Haryana Gets Clearance For 800 MW Thermal Power Plant In Yamunanagar

The Union power ministry has given the Haryana government the go-ahead to construct an 800 MW supercritical thermal power expansion project in Yamunanagar. 

When comparing state-based power plants to pithead power plants, the state power utilities had earlier in June notified the central electricity authority (CEA) that the state-based power plants were more advantageous. 

This was in response to an informal suggestion made by the Prime Minister to the Union power ministry for exploring the feasibility of setting up the power plant at a coal pithead outside of Haryana. A pithead power plant's close proximity to a coal mine is projected to lower the cost of energy production because less coal needs to be transported there.

During a conference on 22 June with representatives from other states' electricity agencies, the state government of Haryana rejected the argument that a thermal power plant ought to be situated at the entrance to a coal mine. 

In a correspondence to the CEA on 27 June, the HPGCL indicated that the total landed cost of power from a Haryana-based power unit would be Rs. 23 per unit as opposed to Rs. 3.38 per unit from a pithead-based power unit outside the state. An annual saving of about 185 crores of rupees may be realised, according to the generator's cost study, which took point of connection fees, energy charge rates, and return on equity into account.

The correspondence mentioned, "Host states, such as Chhattisgarh, are requesting 5 per cent to 7.5 per cent of power on an energy charge rate (ECR) basis through an implementation agreement. According to their policy from 8 August, 2008, Odisha is pushing for 14 per cent /12 per cent. The opportunity cost of not using that much power from the pithead plant has therefore been loaded.” 

State power authorities claimed that the free electricity they would have to provide to the pithead state on an ECR basis would negate any anticipated savings in coal transportation costs. A brownfield expansion unit at Yamunanagar will significantly reduce costs for Haryana due to the availability of land, water, rail infrastructure, a raw water reservoir, a raw water intake channel, and an ash dyke for the new plant, according to the communication to CEA. 

Furthermore, Yamunanagar has no rehabilitation or resettlement concerns related to land acquisition, which would otherwise be a significant problem for the electricity sector, according to the communiqué.

Haryana power utilities chairman PK Das said that the central government has agreed with the state government's contentions during last week's review meeting regarding addition of energy generation capacity. "The Ministry of Power has given a go ahead to Haryana Power Generation Corporation Ltd (HPGCL) to commission the third 800 MW unit at Yamunanagar. Also, a bridge linkage of coal for the proposed Yamunanagar plant has been provided at Jharkhand," Das said.