Reliance Power speeds up Sasan plan
The power arm of Reliance Anil Dhirubhai Ambani Group (R-ADAG) - Reliance Power (RPL) - has accelerated the implementation of its 4,000 mw Sasan ultra mega power project (UMPP).
By Subhash Narayan, TNN |
NEW DELHI: The power arm of Reliance Anil Dhirubhai Ambani Group (R-ADAG) ��� Reliance Power (RPL) ��� has accelerated the implementation of its 4,000 mw Sasan ultra mega power project (UMPP). It now plans to commission at least two units of the mega project within the Eleventh Plan period (by 2012). The new target would mean the completion schedule of initial units of 660 mw each would be compressed to less than 55 months. Reliance Power had earlier agreed to commission the first unit in 69 months from the date of signing the power purchase agreement in August 2007.
The changes in the commissioning programme has been made at the behest of the power ministry that wants a portion of UMPP power generation to be commissioned within Eleventh Plan to offset any slippage on generation target of 78,577 mw. ���UMPP is an ambitious programme of the government. If we are able to put up some UMPP capacity within Eleventh Plan, it could trigger a fresh wave of investment in the power sector,��� an official source said, adding that RPL has indicated that two units of Sasan may be operationalised before April 2012.
It is expected that the government may seek similar commitments from other two UMPP projects at Mundra and Krishnapatnam. Already a joint monitoring committee of the power ministry is evaluating all the UMPP projects to enable its fast commissioning.
Sources in the committee said RPL���s development at Sasan project was progressing smoothly with the company indicating that it would operationalise the captive coal mine (15 million tonne annual capacity) within a period of 10-12 months after getting all the clearances against the normal practice of operationalising a mine in three to four years.
Already, a mine plan has been submitted to the ministry of coal that is expected to give its clearance by April. The forest and environment impact assessment clearances are also expected soon with mining expected to begin by August-September.
On the land front also, initial hurdles have been removed and the company handed over possession of 70 acres of land (by MP government), with 50% of land coming in by March-end and remaining by April-end. Sources said the company has also finalised the EPC contractor for the project and would achieve financial closure by October.
The changes in the commissioning programme has been made at the behest of the power ministry that wants a portion of UMPP power generation to be commissioned within Eleventh Plan to offset any slippage on generation target of 78,577 mw. ���UMPP is an ambitious programme of the government. If we are able to put up some UMPP capacity within Eleventh Plan, it could trigger a fresh wave of investment in the power sector,��� an official source said, adding that RPL has indicated that two units of Sasan may be operationalised before April 2012.
It is expected that the government may seek similar commitments from other two UMPP projects at Mundra and Krishnapatnam. Already a joint monitoring committee of the power ministry is evaluating all the UMPP projects to enable its fast commissioning.
Sources in the committee said RPL���s development at Sasan project was progressing smoothly with the company indicating that it would operationalise the captive coal mine (15 million tonne annual capacity) within a period of 10-12 months after getting all the clearances against the normal practice of operationalising a mine in three to four years.
Already, a mine plan has been submitted to the ministry of coal that is expected to give its clearance by April. The forest and environment impact assessment clearances are also expected soon with mining expected to begin by August-September.
On the land front also, initial hurdles have been removed and the company handed over possession of 70 acres of land (by MP government), with 50% of land coming in by March-end and remaining by April-end. Sources said the company has also finalised the EPC contractor for the project and would achieve financial closure by October.
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According to a source, the government is also facilitating the Sasan project as it is the first in a series of nine UMPPs proposed by it. Besides, the project got involved in a controversy and this needed a clean-up exercise to maintain investor interest.Start a SIP with as low as ₹500 with ET Money App!
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