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GIPCL to set up two lignite-based power plants

Gujarat Industries Power Co Ltd (GIPCL) is proposing to expand its lignite-fired power generating capacity with an investment of Rs 1300 crore by installing two units of 250 MW each.

The estimated investment covers the plants at Nani Naroli, a small village about 45 km from Surat in south Gujarat, and lignite mine expansion.

Company sources said the project would be financed by debt and internal accruals. While the debt portion would be around 70 per cent, about Rs 400 crore would come from internal accruals.

The Vadodara-based company already has two 125 MW units of lignite-fired power plants in Nani Naroli. Bharat Heavy Electricals Ltd (BHEL) is executing two more units, both of which are to be completed by 2008.

For the new expansion project, the company had invited technical bids for the EPC contractor. The last date for submission of the bids was Aug 16.

The additional units of 250 MW will use the eco-friendly circulating fluidised bed combustion (CFBC) steam generators technology. The company has the option to up the installed capacity by 20 percent taking advantage of the new facility.

GIPCL was promoted by Gujarat Urja Vikas Nigam Ltd (GUVNL - erstwhile Gujarat Electricity Board), Gujarat State Fertilizers and Chemicals Ltd (GSFC), Gujarat Alkalies and Chemicals Ltd (GACL) and Petrofils Cooperatives Ltd.

It commissioned its first power project, a 145 MW gas-based combined cycle power plant, in February 1992 at Vadodara. Power from this plant is distributed to its promoters in proportion to their original equity holding.

The company expanded its capacity and commissioned a 160 MW naphtha and gas-based combined cycle power plant here in November 1997 as independent power producer (IPP) with a power purchase agreement (PPA) with GUVNL. Later it commissioned the 250 MW lignite-based power plant