The Mahanadi coal-based thermal power project is located approximately 125km away from the Morga II coal block in the Janjgir-Champa district of Chhahattisgarh, India. KSK Energy Ventures is the owner and developer of the project.
The project was initially planned for 1,800MW capacity but is scheduled for expansion due to the availability of extra fuel from the Gare Pelma Sector III coal block. Its capacity will be doubled to 3,600MW by using the additional coal resources. The first 600MW unit of the plant was commissioned in 2013, with the second following in August 2014.
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The Mahanadi project is one of the largest single green field projects. Power Grid Corporation of India (PGCIL) purchases the power generated by the plant under a bulk transmission agreement.
The Indian Ministry of Environment and Forests granted environmental clearance for the project, which was followed by the Chhattisgarh Environment Conservation Board issuing its authorisation.
Mahanadi coal-based power plant development details
The $3.6bn Mahanadi power project is being developed in two phases. Each phase will have an installed capacity of 1,800MW resulting in a total generating capacity of 3,600MW.
Make-up of KSK’s 3,600MW plant in Chhattisgarh
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The Mahanadi thermal power project is being built over 830ha of land. It is equipped with boilers, electrostatic precipitators, 765kV pooling facility for evacuation, turbine generator, coal handling plant, cooling towers and raw water reservoir.
It will use 12 sets of turbine bypass valves with CCI technology, supplied by Shandong Electric Power Construction Corporation (SEPCO). The utilisation of high and low-pressure lines of the technology will make each bypass application accurate.
Coal required for phase I of the plant is supplied from Morga II coal block of Gujarat Mineral Development Corporation (GMDC), which had agreed to supply seven million tonnes of coal a year. The coal needed for phase II will be supplied from Gare Pelma sector III coal block of GIDC, which has also agreed to supply seven million tonnes of coal a year.
Contractors for Indian thermal power plant of KSK Energy Ventures
China-based SEPCO was selected as engineering, procurement and construction (EPC) contractor for the project. Under the contract, the company is responsible for supply, design, construction, engineering, commissioning and testing services.
Petron Engineering construction, Simplex, Punj Lioyd and many other Indian companies have been awarded subcontracts for construction and other activities related to the project.
Financing of the Mahanadi power project
The project is being financed through a combination of debt and equity. A consortium of 27 banks and financial institutions issued $2.88bn of senior and subordinate debt for the project. Equity investment worth $720m was also raised. IFCI purchased 7.72% of equity stake in the project for $56m.
India’s power market
India’s total power generation during the fiscal year 2012 was 876.89 billion units. In 2011-12, the country faced energy shortages of 10.2% and peaking shortage of 11.1%. The peaking shortage was faced by almost all the regions, with the southern region facing 15.6% shortage and the eastern region facing 4.8% shortage. The central electricity authority of India expects a surplus output in the northern part, as the regions are dominated by hydropower capacity.
The country’s major source of power generation is coal. According to the 12th five-year plan, by 2016-17, the country’s coal demand is anticipated to be 980 million tonnes, with only 795 million tonnes available. Filling of the gap between supply and demand will depend on various factors, such as availability of land, environment and forest clearance, as well as allocation of coal blocks.
