NEW DELHI: Prime minister
Narendra Modi
on Saturday lay the foundation of the
Rs 27,000-crore
Talabira power project in Odisha, which the government says will produce
cheapest electricity
from a thermal plant in the country at Rs 3.65 per unit.
The foundation for the 2,400 MW project being built by state-run Nyeveli Lignite Corporation marks the beginning of work on the first coal-fired power project after the government late last year announced its intent to add 30 gigawatt (GW) of thermal generation capacity on top of 50 GW capacity already under various stages of implementation.
The project follows the government’s mandate to public sector coal companies to build power plants near their mines to save fuel transportation costs. The project is located near the Talabira-II and III coal blocks, which have been allotted to Nyeveli Lignite for captive use. The blocks have total reserves of 553 million tonne (MT) and a peak production capacity of 23 MT.
The pithead plant will charge Rs 2.40 as fixed cost and Rs 1.25 variable cost for each unit of electricity produced and will have 10% biomass co-firing for lower emission.
The project has sewed up power purchase agreement with Odisha for 800 MW, Tamil Nadu for 1,500 MW, Kerala for 400 MW and Puducherry for 100 MW. The first of the three 800-MW unit is expected to be commissioned in 52 months from the zero date, with subsequent units coming online at intervals of six months.
The engineering, procurement and construction (EPC) contract for the Main plant, valued at Rs18,255 crore, has been awarded to BHEL.
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