NBCC looks for a JV to develop 1,000 MW Project along with a coal mine…

National Buildings Construction Corporation (NBCC) has invited an Expression of Interest to develop the coal mine and the power plant for a 1,000 MW project. 

 

Though, the scope of NBCC  as defined during its formation was to carryout the following activities:

• project management
• consultancy services for civil construction projects
• civil infrastructure for power sector; and
• real estate development.

 

Further, the NBCC has raised around Rs. 127 Crore via a Initial Public Offering (IPO) in the month of April 2012.

 

Currently, the company is looking out for a joint venture (JV) partner for the above mentioned project.

 

 

According to sources, NBCC is planning to construct a 1,000 MW power plant at a cost of Rs5,000 crore.

 

Apparently, NBCC requires a coal mine for the purpose. It had planned to apply for allotment of a coal mine under the government dispensation route.

 

The criteria listed in NBCC’s published EoI involves.

• The JV partner needs to have a net worth of over Rs750 crore.
• It should have over 500 acres of land in possession.
• It should have done preliminary work for environment clearance.

 

As per the sources, the move was to increase the order book position of NBCC as work for a 1,000 mw power plant would be around Rs3,000 Crore

 

NBCC will bring the coal block to the table, while mining will be done by the JV partner. Equity capital for the proposed power plant will also be shared.

 

 

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More Literature on this topic:

• http://www.dnaindia.com/money/report_mystery-shrouds-nbccs-planned-coal-and-power-foray_1691543

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BHEL received a contract for ESP Package for Solapur project…

BHEL has recently received a contract for supply and installation of Electrostatic Precipitator (ESP) Package for 1320 MW Solapur Thermal Power Project in Maharashtra.

 

BHEL's scope of work in the contract involves design, engineering, manufacture, supply, and erection and commissioning of the complete ESP package.

The ESP shall be manufactured at BHEL's Ranipet plant, while the High Voltage Rectifier Transformers will be supplied by the company's Jhansi plant.

 

BHEL's Power Sector - Western Region will be responsible for erection and commissioning of the ESP.

 

 

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More Literature on this topic:

• http://zeenews.india.com/business/news/companies/bhel-bags-contract-for-solapur-power-project_47997.html
• http://www.business-standard.com/india/news/bhel-bags-contract-for-1320-mw-solapur-power-project/165510/on
• http://www.indiainfoline.com/Markets/News/BHEL-bags-contract-for-Solapur-Supercritical-Thermal-Power-Project/5421292261

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NTPC awarded Rs. 1.75 Bn order to ABB for developing two substations in Maharashtra…

NTPC has awarded an order worth Rs. 1.75 Bn to ABB Ltd to build two substations at Solapur and Mauda in Maharashtra.

 

The proposed substations will strengthen the grid of western region and facilitate transmission of electricity from new power generation plants being constructed in the region.

 

The substations will include

• 17 bays of 400 kilovolt (kV)  and 14 bays of 132 kV  in Solapur
• 12 bays of 400kV and 8 bays of 132kV in Mauda.

 

ABB’s turnkey project scope comprises the design, engineering, supply, installation, commissioning and associated civil works for the substations. The project is scheduled for completion in 2016.

 

NTPC has also awarded the construction of substations at Mauda (Stage-I), Gandhar and Nabinagar to ABB recently.

 

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More Literature on this topic:

• http://www.indiainfoline.com/Markets/News/ABB-bags-order-from-NTPC/5421922198
• http://www.infraline.com/News/Bharat-Heavy-Electricals-Bags-Ntpc-Contract-For-Equipment-Supply/1/3/1/05_21_2012.htm

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Coal India expects to complete the FSA signing within 15 days from now…

Coal India is expecting to resolve the fuel supply agreement (FSA) deadlock in next two weeks and enter into agreements with all the proposed power plants by first week of June 2012.

 

CIL has prposed to enter into an FSA with 48 power plants which are commissioned between April 2009 and December 2011. Currently around 14 private and public companies have signed  long term FSAs with CIL.

 

However some of the companies are still to sign agreement out of which the public sector power major NTPC is one of them.

 

NTPC is not willing to sign the new FSA proposed by CIL and want certain changes in the same. Out of which the prominent are:

 

• To have similar penal and force majeure conditions as was in the pacts signed till March 2009.
• Removal of the stricter force majeure clauses passing the buck on the buyer even for CIL's failure to procure spares and others.

 

However, despite the refusal of FSA signing by NTPC and few others, already some major companies have either initiated the process of signing FSAs or have already entered the pact.

 

These include Lanco, Reliance Power, CESC Ltd and Bajaj Energy.

 

Adani Power, which requires supplies for nearly 1500-2000 MW, is yet to enter into a pact.

 

 

 

 

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More Literature on this topic:

• http://www.thehindubusinessline.com/companies/article3439563.ece?homepage=true&ref=wl_home
• http://www.infraline.com/News/Coal-India-Hopes-To-Resolve-Fuel-Supply-Agreement-Deadlock-In-Next-Two-Weeks/1/5/1/05_21_2012.htm

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CIL to supply coal to NTPC even without the FSA…

As said by Coal India Ltd (CIL) Chairman & MD Mr. Narsing Rao, the NTPC will continue to get coal supply even if it has not signed FSA with CIL as the Government has directed CIL to extend the coal supply even though the MoUs are expired in March 2012.

 

NTPC is not willing to sign the FSA proposed by CIL due to various issue related to minimum supply level, penal provisions etc.

 

CIL in the previous year had supplied 36 million tonne of coal to NTPC and in the current fiscal the projected requirement was 90 million tonne based on 80 per cent supply.

 

There was also payment dues of close to Rs 400 crore at end of April over differences in Gross Calorific Value (GCV) based formulae of coal. However as said by Mr. Rao, NTPC will be clearing some of these dues in due course of time.

 

According to CIL, the main cause of quarrel between CIL & NTPC on FSAs is the recent GCV based formulae proposed by the Government. It seems that NTPC want to have the Useful Heat Value system instead of the current GCV system.

 

However as said by Mr. Rao, the system has been changed by the government and so CIL does not have any choice. Further according to him, CIL's FSA agreement would not be diluted in the wake of reservations from certain power producers including NTPC to sign FSAs.

 

The coal ministry has also not received any formal refusal for signing the agreements with NTPC plants.

 

The FSAs to be signed by NTPC are mostly for additional units completed till 2011 at the existing power stations for which pacts have already been entered.

 

 

 

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More Literature on this topic:

• http://economictimes.indiatimes.com/news/news-by-industry/energy/power/ntpc-will-get-coal-even-without-fsa-for-2012-13/articleshow/13314452.cms
• http://www.financialexpress.com/news/ntpc-will-get-coal-even-without-fsa-for-201213/951653/
• http://www.infraline.com/News/Ntpc-Will-Get-Coal-Even-Without-Fsa-For-2012-13/1/4/1/05_21_2012.htm

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GAIL plans 100 MW wind projects after commissioning 4.5 MW in Gujarat…

Gas Authority of India Ltd (GAIL) is planning to develop 100 MW Wind Project in various states such as Tamil Nadu, Karnataka and six other states at a cost of around Rs. 620 Crores.

 

The move came from the initial results of 4.5 MW wind power project in Gujarat. 

 

 

The company is setting up another 14 MW WEG project in Gujarat partly for captive use in the State and part;y for sale to the State utility. “GAIL is also in the process of setting up a 100 MW WEG project in Karnataka and Tamil Nadu for commercial use. The wind potential states such as Andhra Pradesh, Gujarat, Kerala, Madhya Pradesh, Maharashtra and Rajasthan are also on the radar of GAIL to expand its presence in the wind energy sphere,” according to an internal plan document of the company.

 

It says, the increasing prices of fossil fuel and the growing concern over global warming due to green house gases (GHG) emissions by fossil fuel-based power generation, have led to interest around the world for harnessing renewable sources for power generation. “Based on the current trend in prices of wind mills along with associated activities, the cost of the proposed 100 MW wind energy project of GAIL is estimated at around Rs.620 crore. The initial projects in Tamil Nadu and Karnataka are envisaged to be commissioned during 2012-2013,” it states.

 

Out of the total project cost, the company intends to invest Rs.248 crore (or 40 per cent of the project cost) as equity and the balance Rs.372 crore is proposed to be met through finance from banks or financial institutions. The rate of interest for getting finance for this project for a period of eight years with a moratorium period of two years is likely to be around 10.25 per cent per annum.

 

The project is envisaged to have optimised combination of wind turbine generators (WTGs). Power from WTGs in the wind farm shall be generated at low voltage and stepped up to 33 kV or other suitable voltage.

 

All the eight states have a wind power policy in place where the period of power purchase agreement (PPA) ranges from 10 years to 20 years.

 

Apart from being environmentally-friendly, the wind energy projects will generate employment for the local stakeholders.

 

 

Source: The Hindu

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