R- Power starts generation from Sasan UMPP second unit

Sunday, 15 December 2013 10:08 Lathish PV

Reliance PowerReliance Power's Sasan ultra mega power project on 13-12-2013 commissioned its second 660-Mw unit, raising the project's total operational capacity to 1,320 Mw. The 4,000-Mw power project is yet to commission four units. The company said these units were in advanced stages of construction and would be commissioned through the next few months.

The first unit of the project commenced operations in March this year. But the certificate of the unit's date of commissioning was set side by the Central Electricity Regulatory Commission (CERC), though the Appellate Tribunal for Electricity allowed Reliance Power to appeal against the decision. Reliance Power hasn't been adding the revenue from the power generated from this unit to its balance sheet. It plans to declare its earnings after the entire 4,000 Mw are commissioned.

The unit commissioned on Friday will increase Reliance Power's generation capacity to 3,205 Mw — 3,120 Mw of thermal capacity and 85 Mw of renewable energy.

"Coal production has already commenced from the 20-million-tonne Moher and Moher-Amlohri coal mines associated with the power project," Reliance Power said.

Sasan, which has a captive coal mine, is the second ultra mega power project to start operations, after Tata Power's imported coal-based power plant in Mundra. Both these projects had run into problems even before being commissioned.

Also, Reliance Power had to approach CERC, seeking a rise in rates for the power generated from the Sasan project. In its petition, the company said the rupee's depreciation had inflated the project's costs. Currently, the case is pending with the regulator.

Earlier, Reliance Power had taken permission from an empowered group of ministers to use excess coal from its three captive mines for another power plant at Chitrangi. This had come under the scanner of the Comptroller and Auditor General, which said windfall gains accounting to Rs 15,849 crore would accrue to Reliance Power.

Source- Business Standard