The stage is set for 2X1000 mw nuclear power plant project proposed by Andhra Pradesh Power Generation Corporation Ltd (Apgenco). Andhra Pradesh chief minister YS Rajasekhara Reddy has given a nod to the project, which is being planned either at Kadapa or Srikakulam. This will be the first nuclear power plant in Andhra Pradesh.

It may be recalled that during a meeting in September, Nuclear Power Corporation of India Ltd had expressed keenness on setting up of a joint venture power project with Apgenco.

According to a statement from the government, the state will have locational advantage as uranium can be sourced from Kadapa for the project.

Besides, the state has a nuclear fuel complex in Hyderabad, heavy water plant at Manuguru in Khammam district and a large coastline. So land and water would not be a problem.

Apgenco would also establish an ultra mega thermal power project of 4,000 mw capacity near Vodarevu in Prakasam district. This was announced by the chief minister during the review meeting on Apgenco?s performance. He also asked the company management to form a special purpose vehicle (SPV) for the project, so that the foundation stone can be laid in December.

During the meeting, he also asked Apgenco to go in for more imported coal besides sourcing coal from Mahanadi and Singareni. He told the officials to build up buffer stocks to avoid any crisis.

Meanwhile, the power generation company is also bidding for two new blocks of coal from Mahanadi for its future needs. As of now the total installed capacity of Apgenco is 7048.9 mw including 3382.5 mw of thermal, 3664.4 mw of hydro and 2 mw of wind mills power. The company caters to nearly 48% of energy requirements of AP Power Grid.

It has 21 thermal units, of which, 20 are running and the one at Vijayawada is under annual overhaul. ?Apgenco thermal stations are presently experiencing shortage of coal due to non supply of coal as per linkage from Mahanadi Coal Ltd. Hence Apgenco has ordered for procurement of one million mt imported coal during the current financial year to run the units at their rated capacity. Apgenco is procuring domestic coal through ?e-auction? from SCCL and Coal India Ltd,? it said.