Thursday 11 July 2013

BGR bags Rs 1,573 cr contract from OPGC

 BGR  Energy Systems Ltd has bagged the balance of plant (BoP) contract valued at Rs 1,573 crore from Odisha Power Generation Corporation Ltd (OPGC) for its expansion project wherein the state owned generator would add two 660 Mw units to its existing power station.

The contract includes supply, erection and commissioning of the BoP for OPGC's two units to be added at its Banharpalli plant near Jharsuguda. OPGC presently operates two 210 Mw units at the site.

The contract was signed by Venkatachalam Kuppusami, managing director, OPGC and A Swaminathan, director (sales & marketing) at BGR Energy Systems.

"BGR has emerged as the successful bidder for the BoP contract. Earlier, we had awarded the contract for the main plant equipment (boiler, turbine and generator) valued at Rs 4051 crore to Bharat Heavy Electricals Ltd (BHEL). OPGC has already achieved financial closure for the project. Physical construction of the expansion project will begin in 2-3 months”, said Kuppusami.

P K Jena, OPGC chairman and secretary (energy) said, “We have possibly got the best bidding price for the expansion project and our generation cost will be Rs 4.62 crore per Mw which is very competitive in the market. All our statutory clearances are in place and now it is the time to start construction work. We see no problems with respect to land acquisition for mining coal from our allocated block and we hope that the two 660 Mw  units are commissioned before March 2017.”

Speaking on the occasion, state chief secretary J K Mohapatra said, “This project is coming up in a challenging and turbulent time when there is a sense of despondency in the economy. Public investments in the power sector have to be stepped up.”

The expansion plan of OPGC, a 51:49 joint venture between the Odisha government and US-based AES Corporation Ltd, involved addition of two supercritical units, each of 660 Mw, being taken up at a cost of Rs 11,547 crore which also includes cost of other components like coal block development and dedicated rail corridor .  The Ministry of Coal had allocated the Manoharpur and Manoharpur dip side coal blocks to OPGC.

The state utility in November 2012, tied up funding of Rs 8660 crore from Power Finance Corporation (PFC) and Rural Electrification (REC), by executing a loan agreement with the two Central PSUs. The balance funding is to be borne proportionately by the Odisha government and AES.

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