RSP’s power dependency to end shortly

Power dependency of the Rourkela Steel Plant (RSP) on the State Government is likely to be fully eliminated in next couple of years. While work is in progress for setting up another 250 Mega

ROURKELA: Power dependency of the Rourkela Steel Plant (RSP) on the State Government is likely to be fully eliminated in next couple of years. While work is in progress for setting up another 250 Mega Watt (MW) coal-based unit of the NTPC-SAIL Power Company Ltd (NSPCL), the SAIL has already signed an agreement to generate 10 MW of hydro power from its Mandira Dam project.After formation of the NSPCL, a joint venture company (JVC) of SAIL and NTPC in 2001, it had taken over the 2x60 MW Captive Power Plant (CPP)-II of RSP. It now generates and supplies 120 MW to RSP and work is in progress since October 2016 for setting up another 250 MW unit at the CPP-II to meet future power need of the plant.

NSPCL sources said the EPC package was awarded to the Bharat Heavy Electricals Ltd (BHEL) in May 2016 with estimated project cost of about `1,600 crore. The NSPCL hopes to start commercial operation of the new unit from December 2018, but it may be delayed by at least six months.NSPCL’s spokesperson and Head of HR at Rourkela Shreelata did not respond to phone calls. In another development, CEO of RSP Ashwini Kumar and Principal Secretary of Energy Department Hemant Sharma, who is also CMD of Green Energy Development Corporation of Odisha (GEDCOL), signed an agreement on February 13 to set up a JVC for generation of 10 MW hydro power.

The JVC has been named as Mandira Power Corporation Limited which will install and operate one Small Hydro Electric Power (SHEP) project on Mandira Dam of RSP at Laing in Sundargarh district. The SAIL and GEDCOL will have equity partnership of 26 per cent and 74 per cent respectively. The SHEP project of 10 MW (three units of 3.33 MW each) envisages to harness the energy potential of water released from the dam for use of RSP. The estimated cost of the SHEP is about `78.8 crore as the existence of the dam significantly cuts down project cost and establishment time. 

With capacity of 4.5 Million Tonnes Per Annum (MTPA), the RSP now requires 215-230 MW. Together with NSPCL and its CPP-I, the RSP has assured supply of about 150 MW and the balance quantity of 70-80 MW is met by the State Government. RSP has plan to become 10.8 MTPA plant by 2025.

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