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TATA Power consumers can expect lower tariffs

Dec 18 2012, 14:13 IST
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SummaryCompany mullls Rs 1,174-crore modernisation plan for Trombay Thermal power plant.

Company mullls Rs 1,174-crore modernisation plan for Trombay Thermal power plant.

TATA Power has proposed cost reduction for its Mumbai customers through modernisation of its 500 MW Unit 6 at the Trombay Thermal Power Station in the city.

The Rs 1,174-crore modernisation plan includes addition of the latest state-of-the-art coal firing equipment and installation of pollution control equipment to make the unit work on coal, oil and gas wherein all three fuels can be combined in any percentage. Currently, the Trombay unit can operate only on oil and gas.

The company said modernisation will improve utilisation of full capacity of 500 MW at best operating efficiency resulting in competitive, reliable and enhanced power supply availability. It will also reduce fuel cost and thus help lower tariffs for Mumbai customers.

“This is being done in the spirit of 100 years of reliable, affordable and continued power supply to the city of Mumbai and to control spiraling oil cost, which is affecting tariffs in Mumbai,” TATA Power said in a statement.

The modernisation will include installation of pollution control equipment like 100 per cent electro static precipitators (ESPs) and flue gas desulfurisation (FGD) systems to maintain emissions at current controlled level. “The use of state-of-the-art pollution control equipment will ensure that the current emission levels are maintained and don’t incrementally impact the environment. Thus modernisation will not result in any additional pollution/emission in Chembur and neighbouring areas. Moreover, no additional water or any other resource is being sought to operate the modernised plant,” it said.

S Padmanabhan, executive director Tata Power said, “We see costs of oil and gas rising and thus have proposed modernisation, which will help reduce costs and ensure higher utilisation of capacity. Tata Power as always remains committed to provide clean and affordable power to its customers in Mumbai, like it has done for last 100 years now.”

The dire need for modernisation has risen due to unavailability of natural gas, which has resulted in Tata Power being dependent on expensive fuel like oil to run its Unit 6. However, shortage of low sulphur oil from local refineries and spiraling prices of imported oil and gas, have led to significant escalation in the absolute cost of power generation from this unit.

Consequently, the 500 MW Unit, which was previously operating at a best operating PLF at 80 per cent, is now operating at around 50 per cent PLF

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