Hyderabad, October 18 : Andhra Pradesh Chief Minister K Rosaiah said that the state government was making efforts to step up power generation in the wake of increasing demand by expediting works on the ongoing power projects and taking up new projects simultaneously.
Mr Rosaiah said the Singareni Collieries would soon take up large scale power generation by setting up a 600 MW coal-based power plant at Jaipur mandal in Adilabad district at a cost of Rs 2,700 crore.
The Chief Minister, who gave his approval for the project and will be laying foundation stone for the power project shortly, was informed that the SCCL would generate equity from its internal resources and the balance would be mobilised as debt.
This would not only give an impetus to the growth of Telangana region, but also help the state to bridge the demand-supply gap in power sector by a large measure, he said.
The Chief Minister also inquired about the ongoing and upcoming power projects from Special Chief Secretary, Energy department, A K Goel, Singareni Collieries Company Limited (SCCL) MD S Narsing Rao and APGenco CMD K Vijayanand over telephone.
The remnant coal locked up permanently in an abandoned mine at Srirampur would be sourced for the power project. This mine would produce about 2.5 million Tonnes per annum. Being a pit-head power station, the project would have several locational advantages including abundant availability of coal and water.
The Chief Minister said the SCCL had already acquired land for the project and obtained necessary environmental clearance. The company was in final stages of negotiations with BHEL regarding plant equipment supplies. It would soon enter into a Power Purchase Agreement (PPA) with APTransco and Discoms for sale of power.
The project is expected to be synchronized to the grid by December 2012, he said.
–UNI