ROURKELA: Fourteen years after it was approved, the 1600 mega watt Super Thermal Power Plant (STPP) of Mahanadi Coalfields Ltd (MCL) proposed at Hemgir block in Sundargarh district has finally found a lease of life with the Cabinet Committee on Economic Affairs (CCEA) recently approving equity investment for the project.
On January 18, the CCEA authorised an equity capital investment Rs 4,784 crore for STPP proposed with an estimated Rs 15,947 crore. It has paved way for equity infusion amidst the central government pushing for thermal and renewable power generation to meet escalating power demand in the region.
Last year, the then MCL’s chairman-cum-managing-director OP Singh reiterated that the 1600 MW STPP would come up amid MCL’s move of diversifying into power generation. In addition, the power purchase process was also getting finalised with few states. The MCL then looked for a joint venture partner and engaged in talks with industries including NALCO.
However, if sources are to be believed, the MCL would now go on its own with the project though no specific time frame has yet been announced for STPP.
On March 17, 2010, the Board of Directors of the Coal India Limited (CIL) in its 255th meeting accorded in-principle approval for STPP. On December 21, the same year, the Ministry of Coal (MoC) gave its nod but thereafter, the project went into cold storage. Four years later, the board gave in-principal approval for the detailed project report (DPR) with an anticipated cost of about Rs 11,363.18 crore with a debt-equity ratio of 70:30.
To execute the proposal through a special purpose vehicle (SPV), the Mahanadi Basin Power Ltd (MBPL) was incorporated on December 2, 2011 as a wholly-owned subsidiary of MCL.
According to the annual reports and accounts 2017-18, the required land was acquired by the MCL under the Coal Bearing Act 1957 and the MoC accorded in-principle approval for leasing of 858.60 acre of land to MBPL at Tiklipara, Sardega and part of Gopalpur village for the STPP in Hemgir block for a period of 50 years on July 12, 2016.
Sundargarh MLA Kusum Tete welcoming the latest development said the project would generate employment and lead to economic growth of the region, especially after the 4000 MW ultra mega power plant failed to take off and NTPC’s STPP at Darlipali is reduced to 1600 MW capacity against the original plan of 3200 MW.