Coal news and updates

GMR Energy may start operations at stranded gas and coal-based power stations

Thermal, hydro and solar energy generator GMR Energy expects to begin operations at its stranded gas and coal-based power stations in the next couple of months as it has won two coal mines in the recent auctions and secured imported gas supply under the reverse auction process, a top company executive said.

"Fuel non availability is a critical issue, which has dogged our past and loomed large on future operations," Ashis Basu, president-corporate functions at Bengaluru-based  GMR Energy. "It has been significantly resolved for coal-based assets and party resolved for gas-based assets."

GMR Energy has coal security for all its coal-based assets worth 3,000 Mw, while its two gas-based plants — GMR Vemagiri Power Generation Ltd and GMR Rajahmundry Energy — with a combined capacity of 772 Mw have won imported gas supply through the government's reverse auction process.

The gas supply will allow the plants to run at 25 per cent capacity during June-September and sell power for Rs.6.14 per unit to distribution companies. As per the scheme the government will subsidise the distribution companies to the extent of Rs.1.44 per unit from the Power Sector Development Fund.

The company's 1,370 Mw Chhattisgarh power plant is expected to start commercial operations soon with fuel assurance from two captive coal blocks. GMR said the Talabira-I coal mine in Odisha, which it secured in the auction, is expected to operational this month.

Talabira-I mine will be able to produce up to 3 million tonne coal per annum in its life span of three years by which time, the company's other coal mine in Ganeshpur in Jharkhand will start operations.

GMR will participate for gas supply in the next round of reverse auction in August.

source: http://economictimes.indiatimes.com