NTPC: Coal requirement and operations at its units

By: |
October 5, 2019 2:05 AM

NTPC has completed trial-run operations at full load for unit-1 on 29th Sep’19 and will likely commercialise the unit this month.

NTPC, Coal requirement, FGD contract, Maharashtra, Nimarkhedi station, Chhattisgarh, Madhya Pradesh, Khandwa stationNTPC organised an analyst visit to this plant. Below are our key takeaways from it.

NTPC has recently commissioned the first unit (660MW) of its Khargone TPP (2x600MW). This plant is India’s first ultra-super-critical project with a station heat rate (SHR) of 2,070kcal/kWh. Notably, it is ~3% more efficient than the super critical ones given the higher steam parameters. Unit-1 is likely to commercialise soon, while unit-2 commissioning is scheduled for Jan’20. NTPC organised an analyst visit to this plant. Below are our key takeaways from it.

NTPC has completed trial-run operations at full load for unit-1 on 29th Sep’19 and will likely commercialise the unit this month. For unit-2, light up will likely be completed over the next one month with commissioning scheduled for Jan’20. Total project cost for the plant is ~Rs 110b (~Rs 83m/MW) – excluding FGD. FGD contract of Rs 5.2b has been awarded and likely to commission in Nov ’20. In terms of PPA, 50% of capacity is tied up with Madhya Pradesh, ~19% with Gujarat and ~10% with Chhattisgarh. Balance is with other states (Maharashtra, Goa) and UTs (Daman & Diu, Dadra & Nagar Haveli).

Coal for the plant would be sourced from its own captive mine (Pakri Barwadih or – PB). The mine is located ~1,100km from the plant and significant investments (~Rs 15b) are made to ensure rail connectivity. This includes ~Rs 9b on preparing a 37km railway corridor from the plant to Nimarkhedi station (nearest to the plant), ~Rs 5b of deposit for BG conversion of line from Nimarkhedi to Khandwa station (42km) and ~Rs 1b for carrying out electrification. Given the long distance between the mine and plant, freight cost is high (~Rs 2,200/t). Fuel costs are at ~ Rs 3-3.3/kWh for the plant. Initial tariffs would be >Rs 5/kWh.

NTPC has two wagon tipplers in place at the site, with the third one set to commission by Nov’19. The plant is being supplied 2-3 rakes on a daily basis. At full operations (including Unit 2), the company will have to handle ~5 rakes/day. Given turnaround time of ~5 hours, each wagon tippler can handle ~4 rakes/day. Thus, rake handling infra appears to be in place. We note PB is a basket mine (FY19 production: 6.8mt) supplying to various plants of NTPC.

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