Sembcorp Industries announced that it has signed an agreement to acquire 45% of NCC Power Projects (NCCPP) through a wholly-owned subsidiary at a cost of Rs. 848 crores (approximately S$175 million). NCPP is currently building a 1,320-megawatt coal-fired power plant near Krishnapatnam Port along the coast of Nellore in India, quite adjacent to Thermal Powertech Corporation India (TPCIL), Sembcorp’s first power plant investment in India.
Both the plants will be run by the Sembcorp management team in Nellore allowing Sembcorp to benefit from numerous synergies like using the common infrastructure for coal imports and logistics. NCCPP’s project is expected to go on stream by early 2016. TPCIL plant is nearing completion and the project’s first 660-megawatt unit is expected to be commissioned in the second quarter of 2014. TPCIL’s second 660-megawatt unit expected to go on stream by the end of 2014.
NCCPP is jointly owned by Gayatri Energy Ventures (GEVPL) – Sembcorp’s partner in the TPCIL project – and NCC Infrastructure Holdings (NCCIHL), a subsidiary of NCC Limited. Post acquisition, Sembcorp will hold 45% of NCCPP, while the remaining 55% will be held by NCCIHL. NCCIHL is jointly owned by NCC Limited and GEVPL.
Gayatri Projects Ltd (GPL), the parent company of Gayatri Energy Ventures, a major partner in NCC Power Projects, is considering to reduce its stake in NCC’s 1320 MW thermal power plant near Nellore.
Preliminary discussions are said to be on between NCC Infra and Sembcorp. Gayatri’s stake in the project is expected to go down to 45%, post sale, subject to a detailed technical, financial, commercial & legal due diligence.
Thermal Powertech Corporation India Ltd has signed a fuel supply agreement with Mahanadi Coal Fields Ltd, a subsidiary of Coal India Limited, for its 1,320 MW coal-fired generation plant in Krishnapatnam, SPSR Nellore district. TPCIL is a joint venture between Gayatri Energy Ventures Private Limited and SembCorp Utilities.
The plant has been designed to run on 70 per cent domestic coal and 30 per cent imported coal. The imported coal requirement will be met through the company’s coal supply agreement with PT Bayan Resources of Indonesia signed in February 2012.
The 150 MW first phase thermal power plant of Simhapuri Energy near Nellore has commenced commercial operations. Simhapuri Energy is a 100 per cent subsidiary of Madhucon Projects Ltd. Simhapuri Energy is developing the 1,920-MW Simhapuri project in three phases. Madhucon is expected to add another 150 MW plant by June and the 300 MW second phase also will be completed during this year. Third phase has two units of 660 MW each. The total project outlay is Rs 11,270 crore.
The project is based on imported coal. PT Madhucon Indonesia, another subsidiary of Madhucon, has rights to mine three coal projects in Indonesia estimated to have about 1,500 million tonnes of coal. The company expects to begin coal production by June 2012.
55MT of power grade coal meant for thermal power stations is being unloaded from an Indonesian cargo ship at Krishnapatnam, Nellore. Two other ships have anchored to unload 6.4MT palm oil and 66MT of urea fertilizer. 32.7 MT of corn is being exported through a Hongkong liner.
About 25 coal based thermal power plants with a capacity of nearly 30,000 MW are under various stages of government clearance, financial closure or project development in SPSR Nellore district. Krishnapatnam port will feed the imported high quality coal for most of these units which are being setup in the close vicinity to take advantage of reduction in transportation cost of coal, which is the main raw material for these units.
On the flip side, these units are expected to burn about 3 lakh tonnes of coal per day generating huge quantities of fly ash, carbon dioxide, sulphur and other harmful chemicals. Experts say that new generation thermal power plants have minimized the release of harmful pollutants. Fly ash is also widely being used in production of cement and bricks. However, it is not yet clear how the water requirements will be met and what would be the after effects on ground water levels and sea water quality and its ecological effects.
Exelon Infrastructure Ltd has informed BSE that the company has entered into power sector and proposes to set up a coal based 350MW thermal power plant near Krishnapatnam Port, Nellore District and the Company is in the process of identifying the land.