CEA APPROVES PANIPAT TPS EXPANSION

---

Central Electricity Authority (CEA) has accorded Techno Economic Clearance for the addition of two units of 250 MW each to the existing coal based thermal power station at Panipat in Haryana belonging to the erstwhile Haryana State Electricity Board and now with the Haryana Power Generation Corporation Ltd. (HPGCL). With the addition of 500 MW fresh capacity the energy and peak power shortages in Haryana would be significantly reduced. The project would be set up at an estimated completed cost of Rs. 1785 crore out of which the Haryana Government would contribute Rs. 357 crore in the form of equity, where as the balance Rs. 1428 crore are proposed to be raised by HPGCL as term loan from the Power Finance Corporation with a repayment period of 10 years at an interest rate of 12 per cent per annum. The Techno Economic Clearance accorded by CEA is subject to the condition that any cost implications arising from the environmental stipulations of Ministry of Environment and Forest shall be absorbed by HPGCL. CEA has directed the power wheeling agency – Haryana Vidyut Prasaran Nigam Ltd. (HVPNL) to install 375 MVAR shut capacitors in their transmission system by such this generating capacity is commissioned by HPGCL. CEA has asked HPGCL to conclude the fuel supply agreement by the end of September 2002. The 2X250 MW thermal generation project would be commissioned in about 35 months from the zero date.