Update on KSK's 3600 MW Mahanadi Thermal Power Project...

 

A brief update of KSK's 6 X 660 MW KSK Mahanadi Thermal Power Project  which is the largest  power  generation initiative  of the KSK Group has been submitted by the company to NSE.

 

 

 

A brief update on the project on-site progress is as provided  below:

• First 600 MW Unit is fully functional  with all associated  ancillary  infrastructure set up by various Group companies commissioned and operational;
• The entire  60 km pipeline  laying  work  for the water  intake  system  for the power plant has been completed  and currently  used for water transport; and
• The  rail  connectivity  of  the  power   plant  to  the  Indian   Rail  network   is completed  with movement of rakes into the plant commenced.
• Power  supplies   are  being  made  in  accordance  with  the  Grid  code  and  Power Purchase  Agreements  ("PPA").  Revenue  recognition  is expected  to commence  in the later part of the current  quarter.
• It is anticipated that boiler light up for the second  unit of 600 MW, on a test basis, will be achieved  within  the next 45 to 60 days and  the turbine  generator  box up is also anticipated to be completed around the same time. Flue duct fabrication  works and  insertion  completion in the second  chimney  for the second  600 MW unit is in progress.

Fuel Supplies:

With capital  investment commitment of over  US$ 3.6 billion, this coal fired  power  plant once completed  will help address tl1e power  requirements of multiple  states  across India, namely   Gujarat,   Chhattisgarh,  Goa,   Andhra   Pradesh   and   other   states   with   power generation  based   on   long   term   coal   supply    arrangements  with   Gujarat    Mineral Development Corporation ("GMDC") and  Goa Industrial  Development Corporation from the committed Morga-II and Gare Pelma-III coal blocks respectively, with tapering  linkage arrangements with  Coal India to address immediate needs.

KSK has been anticipating the immediate term fuel supplies of the power  plant being met through tapering linkage granted  to the Company in November  2008 and  the Company has been  pursuing the same  with  the Government of India  for a considerable time.  Further updates shall be provided as we obtain necessary confirmations and execution with respect to the same.

Power Sales:

As regards  Power sales, KSK Mahanadi is pleased  to confirm  that an additional long term PPA for 500 MW of Net Capacity, under  a competitive Bidding process, has now been concluded  with Tamil Nadu  Generation and  Distribution Corporation Limited ("TANGEDCO") at a levelised  tariff of Rs  4.91/kwh, with potential  for tariff escalations on account of certain input costs.

The Company has participated in other competitive bids under Case-I mechanism by state utilities and  is waiting  for further  tie-up of substantial power  plant capacities  under  long term PPAs."

Source: NSE