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NTPC to get coal, no decision on NHDC project: Scindia

NHDC likely to exhaust its internal funds in project which would be based on super critical technology

It is official now. The 1,320 MW Reva Thermal Power Project (RTPP) in Khandwa (western Madhya Pradesh) will be considered in the next five year plan. The project was slated to be completed by 2017.

The Union Minister of state for power Jyotiraditya Scindia today cleared that the coal linkage for the project will not be possible as of now. He however said the other upcoming projects of NTPC will get coal soon.

“The NHDC project will be considered in the next five year plan,” the minister said here and added, “However both the upcoming projects of National Thermal Power Corporation (NTPC) in Barethi and Gadarwara will be okayed in the next meetings.”

State owned Narmada Hydroelectric Development Corporation (NHDC), a joint venture of National Hydro Power Corporation (NHPC) and state government, has completed the private and government land acquisition process for the project. The DPR is still in pipeline and financial closure for the project has yet to be obtained.

NHPC and state government each has picked 30% equity in the project though NHDC is likely to exhaust its internal funds in project which would be based on super critical technology. Few days ago the company’s top executive had said, “Section-4, Section-6 and Section-9 notices have been given to farmers of the area and award will soon be passed but we are waiting coal linkage.”

The project, which will require Rs 6,500 crore venture, was expected to be completed before 2017 during the 12th Five Year Plan. Since Narmada valley has exhausted its all thermal power potential the company ventured into thermal power projects..
Meanwhile Scindia further said, “Both the projects of NTPC in Gadarwara (near Jabalpur) and Barethi (Bundelkhand region) will get coal linkage soon.”

The Public sector power major National Thermal Power Corporation (NTPC) is also awaiting coal for its Rs 11640 crore 1600 Mw (2X800) super critical Gadarwara project though other clearances have been obtained.

The company is also likely to raise finance for the projects through ECB (Extra Commercial Borrowing) routes.

The company has already obtained environment clearance for the project.

The company is setting up the project at one of the most fertile area Gadarwara which is known for its palatable tur dal. Also the project would come up in close proximity of one of the least polluted river Narmada.

The NTPC would supply 50% of the total power generated from the 2X800 MW project to the state. The company, according to sources in state department of energy and Bharat Heavy Electricals Limited (Bhel), has already placed orders for plant equipment to Bharat Heavy Electricals Ltd.

The Barethi super critical thermal power project will be of 3,690 Mw capacity. The company already has its thermal power plant in Madhya Pradesh with installed capacity of 3,760 Mw.

Source: Business Standard