Nine independent power projects up for review today

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Mumbai, Dec 26: Nine power projects — including Reliance Energy’s 3,740 mw Dadri project, Essar Power’s 1500 mw Hazira project and Tata Power Company’s (TPC) 1000 mw Vile plant — with a combined generation capacity of over 9,000 mw will come up for review at the Inter Institutional Group’s (IIG) meet scheduled for Monday in Mumbai. These projects entail a total investment of over Rs 40,000 crore and their per unit tariff is estimated to be around Rs 2.

The IIG meeting, which would be chaired by power secretary RV Shahi, would also review the present status of individual projects in achieve financial closure. IIG comprises IDBI Ltd, State Bank of India, ICICI Bank and Power Finance Corporation (PFC).

The list of nine projects comprises Nagarjuna Power Corporation Ltd’s Mangalore project (1,015 mw), Jaypee Karcham Hydro Corporation’s Karcham Wangtoo hydro project (1,000 mw), TPC’s Vile coal based project (1,000 mw), Essar Power’s Hazira combined cycle (1,500 mw), Rajasthan Spinning & Weaving Mills’ Allain Duhangan hydro project (192 mw), Reliance Energy Ltd’s gas based project in Dadri, Uttar Pradesh (3,740 mw), China Light & Power India’s GPEC-II in Gujarat (1,050 mw) and Lanco Amarkantak in Chhattisgarh (300 mw).

Top sources told FE: “A majority of these projects are likely to achieve financial closure by March next year. IIG will look into specific issues relating to fuel linkage and environmental clearance and try to help the promoters to complete the necessary formalities. TPC, at its meeting held last week with the power ministry, has indicated that the company proposes to make investments through internal resources and if it requires additional funds, may approach the Power Finance Corporation.”

The promoter of the Nagarjuna project has estimated the first year tariff at Rs 2.08, Karchan Wangtoo (Rs 2.08), Hazira (Rs 2.18), TPC’s Vile (Rs 2), REL’s Dadri (Rs 2), GPEC-II (Rs 2) Allian Duhangan (Rs 2.30).

Sources said that TPC has called upon the power ministry to accord a mega power project status for its Vile project in view of its generating capacity of 1,000 mw. TPC proposes to supply power from the Vile project to more than one state.