Gujarat Industries Power to set up two more units

October 20th, 2008 - 4:39 pm ICT by IANS  

Ahmedabad, Oct 20 (IANS) Vadodara-based Gujarat Industries Power Co Ltd (GIPC) will set up two more lignite-based thermal power projects, each with 250 MW capacity, taking its total power generation capacity to 1,000 MW, a top official said. The project includes development of a captive lignite mine, said S.L. Bose, GIPC executive director, responsible for the execution of lignite-based thermal power projects.

The power stations are expected to come up at a site close to the existing Surat Lignite Power Plant (SLPP) at Nani Naroli, in Surat district.

Bose told IANS that it was not yet decided whether the project should be undertaken under international competitive bidding or through negotiations. GIPC board would take a call on the issue within four months.

The official refused to divulge investment details, but according to power experts, the total investment would be around Rs.20 billion.

GIPC first set up a combined cycle 165 MW gas power station in Vadodara. Later it executed two lignite-based power stations near Surat with an installed generating capacity of 125 MW each.

The new captive mine being developed for the expansion project has been located at Mangrol near Surat. The mine is designed to produce 2.4 million tonnes of lignite per year.

The engineering procurement and construction (EPC) contract for the expansion project has been awarded to Bharat Heavy Electricals Ltd (BHEL) at a cost of Rs.12 billion. The project is expected to start commercial operation next year.

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