Genco to set up new power plant
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11/02/2008
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Deccan Chronicle
Efforts are being made to set up another thermal power station with a capacity of 500 mw called Pithead Thermal Power Project (PTPP) in Sattupalli by APGenco. The officials of APGenco started clearing the bottlenecks in setting up the power project there such as finding water, land and coal linkage. As per the prlimerary survey, 1,000 acres of land has to be acquired for the project from farmers in Vemsoor mandal near Sattupalli. The main problem for the project is to get coal linkage. In all, 2.2 million tonnes of coal is needed per anum. Singareni Collieries Company Limited started open cast mines at Sattupalli and currently producing 1.5 million tonnes per year and it is capable of unearthing six million tonnes per year. It has a coal linkage agreement with Maha Genco for supplying 2.26 tonnes of coal. The state government noticed that the power project is cost-effective when compared to the other thermal projects. The SCCL is capable of transporting only 1.5 million tonnes of coal from Sattupalli open cast mines by road. It is easy for it to supply coal to the proposed PTPP instead of shifting it to the thermal power station, 690 mw at Parli in Maharashtra, 610-km distance from Sattupalli being operated by Maha Genco, involving huge freight charges being incurred by it besides frequent problems of coal availability due to delay in movement of wagons. The SCCL officials informed that they will be in a position to supply coal to the proposed PTPP only if the state government can get swapping of existence linkage of its coal to Maha Genco by persuading the Centre. Efforts are on to convince Maha Genco to get the coal from Western Coal Fields instead of the SCCL. Special chief secretary A.K. Goel wrote a letter to secretary of Government of India, ministry of coal on the issue.