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Navabharat Power begins groundwork for phase II of Malaxmi project

Steel News - Published on Mon, 21 Apr 2008

SNS reported that Hyderabad based Navabharat Power Private Limited is preparing the groundwork for the 1,200 MW phase II of the 2,050 MW Malaxmi mega thermal power project at Meeramundali and Kharagprasad villages in Dhenkanal district of Orissa.

Mr PN Bhaskar senior VP of Navabharat Power Private Limited said that the 1,050 MW phase I of the project, coming up on 1,200 acres of land provided by the Orissa government, is nearing completion. He added that \"We started off with a plan to set up a 2,050 MW power plant of which phase I is 1,050 MW, involving an investment of INR 4,800 crore. 75% of the project cost is funded by financial institutions and the balance 25 per cent through equity.\"

Mr Bhaskar said that \"NPPL has just invited proposals for expression of interest cum request for qualification for phase II.\" He added that bids had been invited from EPC contractors for setting up two units of 600 MW or any other configuration that conforms to the capacity. The completion period for the first unit is 36 months and that for the second, 40 months.

According to Mr Bhaskar, Navabharat Power Private Limited has signed the power purchase agreement under which 25% of power will be exported to Grid Corporation of Orissa and 75% to Power Trading Corporation, with a tariff rate of INR 2.35 per kW as approved by the Central Electricity Regulatory Commission. It is also allowed to sell 30% of PTC\'s share of 75% at an agreed rate of INR 4.50 per kW.

Mr Bhaskar further added that \"NPPL can make good amount of money out of this deal. Although Orissa is currently facing power shortage, once all the power projects such as ours come through, the state will emerge power surplus.\"

Posted By : admin on Mon, 21 Apr 2008
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