Tannirbavi power plant project to shift to AP

01 October 2009

The barge mounted power project that had commenced operations at the Tannirbavi here on behalf of the GMR Energy Limited eight years ago, is all likely to be shifted to Kakinada in Andhra Pradesh next year.

The naphtha based plant was founded in June 2001 despite much opposition from the fishermen and environmentalists of the region.

It is learnt the company which had entered into a two year power purchase agreement with the Karnataka Government was now finding it difficult to supply power at the rate of Rs 3 per unit as per the agreement as the cost of per unit of power has risen to Rs 9.As the naphtha based power has become costly, the company it is learnt, is forced to shift the plant to Andhra Pradesh where it is expected to set up a gas based power plant.

The company owns 30 acres of land in Tannirbavi. In case the company finds gas supply to this plant much easier, then it is planning to set up a gas based power plant here by 2012, says the Company Director MV Subbarao.

The Tannirbavi plant with a capacity of 220 mw of power presently generates 5 million units of power per day. But the declining demand for the power generated here, has now forced the plant to shut down.
It will be setting up a gas based power plant at a cost of Rs 450 crores in a 53 are land in Kakinada. Works on this project has already commenced.

Though the company intends to shift the plant in a day undertaking dredging works, fishermen organizations have raised objections to the same on the grounds that it would affect fishing operations. They have also warned that they would disallow the company to resort to dredging in a much larger area.

source the canara times