Additional German aid for VTPS-IV

By Our Special Correspondent

HYDERABAD, SEPT. 3. A high-level delegation from KfW, Germany, now on a visit to the State, has agreed to explore the possibility of providing an additional soft loan assistance of Rs.300 crores to an already committed Rs.1,200 crores for the expansion of the Vijayawada Thermal Power Station (VTPS), stage- IV, with one unit of 660 MW. The super critical technology, being employed in the setting up of the unit, improves overall efficiency by two per cent, thereby reducing the fuel cost.

The delegation led by Mr. Ohis, first vice-president, South and Central Asia discussed the project feasibility report with Mr. J. Parthasarathy, Chairman and Managing Director of AP Genco.

The AP Genco has decided to use domestic washed coal or blended coal against imported coal proposed by KfW, to save foreign exchange over a period of 30 years. The total project cost, excluding contingencies and interest during construction (IDC), is Rs.2,547 crores. The cost is likely to come down considerably owing to suggestions made by the AP Genco, says a press release. The boiler design to hand both types of coal economically is being considered.

The remaining project cost, excluding KfW assistance, would be met from internal resources and financial institutions like ICICI, PFC and SBI. The delegation comprised Mr. Johnston, Mr. Ernst, senior project engineer, and Mr. Haller, Director of Indian Division.

Mr. Scotland, representing the consultants for the feasibility study, Lahmeyer International, and Mr. V.S. Verma, Chief Engineer, Central Electricity Authority, also participated in the discussions. The final feasibility report would be presented by the consultants in October.

It also proposed to compress the completion period of the project to 38 months from the normal 42 months. Coal linkage for expansion under Stage-IV was also provided by the Government of India.

The VTPS, consisting of six units of 210 MW capacity achieved a Plant Load Factor of 93 per cent and bagged national productivity awards for the past 17 years.

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Section  : Southern States
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