Mumbai, Dec 17: Hindustan Petroleum Corporation Ltd (HPCL) has shortlisted five energy companies - New York-based Texaco Inclusive, Marubeni of Japan, Entergy Power Asia PTA of Singapore, Consolidated Electrical Power Asia and a Larsen & Toubro-CMS consortium - for setting up the Rs 2,811 crore, 500 mw power plant at Vishakhapatnam in Andhra Pradesh (AP).The other power producers who had bid for the project included Lurgy of Italy and a consortium of Bombay Suburban Electric Supply (BSES) and Bharat Heavy Electrical Ltd (Bhel).
Sources informed that the company is in the process of finalising the bids. The foreign partner will be offered a 24 per cent stake in the refinery-residue-based power plant.
Officials in the oil company informed that HPCL and Andhra Pradesh State Electricity Board (APSEB) have opted for a 26 per cent stake each in the power plant. The remaining 24 per cent will be picked up by financial institutions and other consumers, they added.
The plant will be based on refinery residue like furnace oil and other heavy ends from the nine-million tonne (mt) refinery set up by HPCL at Vishakhapatnam. Like other power projects, HPCL would be using environment-friendly integrated gas combination combustion (IGCC) technology.
The power plant will have an in-built ability to switch to gas as a fuel subsequently. Sources added that there is provision to double the capacity of the plant. The Vishakhapatnam Port Trust has earmarked 100 acres of land for the power plant. The preliminary report of the project has been prepared by Engineers India Ltd and a detailed feasibility report is in progress.
The plant would be completed within 36 months after the financial closure and the power will be supplied to high tension consumers such as industries and fertiliser plants in AP. The consumers would pay directly to the project company by way of deposit, sources said.
This would ensure continuous cash flow to the company and hence, formalities like escrow accounts, letter of credit and government guarantees would not be required, sources added. On the other hand, consumers will be assured of uninterrupted power supply. The tariff for the power has not been finalised yet. Environmental studies and risk analysis have been completed by the National Environment Engineering Research Institute (NEERI) while the technical committee of Andhra Pradesh Pollution Board is reviewing the feasibility report.
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