MANGALORE: The controversy-ridden Tanir Bavi power project will be having a new home soon. GMR Energy Limited (GMREL), a subsidiary of GMR Infrastructure Company, will be relocating the naptha-based barge mounted power project from Tanir Bavi, Mangalore, to Kakinada in Andhra Pradesh in January 2010. Confirming the news, GMREL Director (administration) M V Subba Rao told Express that they had obtained necessary approvals from the government to shift the plant. The barge mounted power plant, with a total capacity of 220 MW, was put up at Tanir Bavi on June 8, 2001, amidst stiff opposition from environmental groups and local fishermen.
When the power purchase agreement between the government and GMREL ended in June 2008, the former was buying power at Rs 10 per unit. On reasons for the relocation, Rao said the non-availability of naptha and Karnataka Electricity Regulatory Commission’s (KERC) directive to boards on buying cheap power had made the business unviable.
The transportation of the plant to Kakinada on the East coast, a distance of 1,200 km, will involve an investment of $83.54 million (about Rs 450 crore). A huge part of the investment has been earmarked for dredging. “The 7.5 km distance from the site to the river mouth will be dredged at a cost of Rs 25 crore,” said Rao. Allaying fears of fishermen, Mangalore Old Port Officer Khudri said that dredging will be done scientifically and silt will be deposited in places identified by Mangalore Old Port. “The path will be cleared with the aid of computer controlled cutting,” Rao said, and added that dredging would prevent flooding at the river mouth for the next 10 years.
Tentatively, the dismantled plant would be transported to the mother ship in January 2010, hired a year ago, and reinstalled on 53 acres of land in Kakinada.
The plant, using LNG gas as fuel, would be commissioned in April 2010.
The plant at Tanir Bavi is still operational, and since June 2008 is supplying on an average about 5 million units per day to the northern states through Karnataka grid under ‘open access system’ of Karnataka Electricity Act 2003.
ANOTHER PLANT IN TANIR BAVI?
Subba Rao said that GMREL would retain the infrastructure and 30 acres of land in its possession. “If the LNG gas pipeline project from Cochin passing through Mangalore is realised in 2012, then we may buy another barge to generate power,” said Subba Rao.
harsha@epmltd.com
