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SCCL to Revise Cost for Power Project in Adilabad

  • The project cost of the 2X600 mw coal fired power project being implemented by the Singareni Collieries Company in Adilabad district of Andhra Pradesh will be revised due to the changed specifications in the boiler, turbines and generator of the plant.The changes in the specifications, recommended by NTPC, were required in view of the seismic activity as the project comes under the Lathur seismic zone and for better efficiencies.SCCL will revise the estimates in a month or so when the bids for the balance of the plant would be finalised. The LI bid will indicate the quantum of revision in the expenditure; SCCL, chairman andmanaging director, S Narsing Rao told Financial Chronicle.

  • “We have permission to spend up to Rs 5,685 crore as of now. There will be revision due to change in specifications. The debt-equity ration will remain unchanged,” he said.The project is estimated to be Rs 5,685 crore. About 70 per cent of it (Rs 3,980 crore) will come from Power Finance Corporation and about Rs 350 crore has already been extended to SCCL, which will get the remaining 30 per cent of the project funding from its internal accruals and some debt.PFC agreed to give the loan for 48-month tenure. SCCL will pay an interest of 12 per cent. The interest for the non-productive period of three years would be converted to capital.

  • This is the maiden power venture for the state owned miner, which supplies about 57 per cent of the coal requirements to the state’s power utility APGencos and NTPC and others.The Balance of Plant works are estimated to cost around Rs 1,000 crore. So far, 27 prospective bidders have taken the bid applications. Though SCCL wanted to close the bids by March 15, it is now heeding to the request from the bidders to increase the time, some asking it to be increased by one month.

  • Rao said the costs of other components of the project except the BOP have been frozen.SCCL has already placed Rs 4,071 crore equipment supply order with Bharat Heavy Electricals (Bhel) for design, engineering, manufacture, supply, erection, testing and commissioning of steam turbines, generators, boilers and associated civil work of the projects.The project would need about 13,500 tonne coal per day and this would be supplied from SCCL Srirampur and RK mines in Adilabad district.SCCL would supply 85 per cent of the power-to-power utilities (Discoms) in Andhra Pradesh and the remaining 15 per cent for captive use.The phase I of the power plant is expected to be ready by end of 2014 while the second unit would be commissioned in three to six months after that.

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