Business sale of 1080 MW Coal Fired Thermal Power Plant
5 Power scenario in Jharkhand
6 Project Highlights
8 Asset Location
9 Area Proximity
12 Our CSR Initiatives
Both, Phase I and Phase II of the project are financed by a consortium of banks. Rural Electrification Corporation (REC) was the Lenders Agent for Phase I and State Bank of India (SBI) was the Lenders Agent for Phase II of the project.
The original Scheduled Commercial Operation Date (SCOD) for Phase I and Phase II of the project was December 7, 2012 and April 1, 2014, respectively. However, there was a delay and significant cost overrun in Phase I due to increase in Interest during Construction (IDC), non-availability of customs/excise duty benefit, increase in scope of work in water pipeline and transmission line, etc. Further, promoter’s ability to infuse funds got affected and resulted in demobilization by the contractors from the site due to delayed payments. Further, due to demobilization by the contractors, the situation in Phase II of project was also similar involving cost and time overrun. At present, the project activities are suspended for both phases. The first phase is in an advanced stage of completion with the hydro test completed for the boilers of both the units. Lahmeyer International (India) Pvt. Ltd., the Lenders Independent Engineer’s (LIE) in the project have reported that the project has achieved a progress of about 95.95% for Phase I and about 66.94% for Phase II as of end February 2013.
Corporate Power Limited (CPL) was incorporated by Abhijeet Group (AG) to setup a 1080 MW thermal power plant in two phases of 540 MW each at Chandwa block of Latehar district in the state of Jharkhand. The Phase I comprising of 2 x 270 MW, was at an advanced stage of completion. The Phase II of the project with a similar capacity of 2 x 270 MW was under execution.
Peak Demand & Availability (MW)
Power scenario in jharkhand
*Source : Power for all report, Jharkhand
Corporate Power Limited (CPL) was promoted by Abhijeet Group for implementation of a 1080 MW coal based thermal power plant in 2 phases of 540 MW (2X270 MW) each at Latehar, Jharkhand.
The implementation of the project got stalled in September 2012 due to inability of promoter to infuse equity. BHEL and other contractors have since demobilized from the site.
Arcil has acquired debt from SBI, SBP, SBH, SBT, SBBJ and IIFCL on March 31, 2015 has taken physical possession of site in June, 2016. Arcil has appointed a plant head and engaged local employees in preservation & security related activities.
Arcil has made a representation before the Hon’ble Chief Minister of Jharkhand and state Govt. who have assured support. MECON was appointed by the State Govt. for conducting a Technical Due Diligence Study and Arcil has obtained the report.
Jharkhand is being served by multiple distribution licensees viz. JBVNL, DVC, Tata Steel, JUSCO and SAIL Bokaro. Out of the total load of 3,255 MW at the State level, about 1,810 MW is served by JBVNL. Except JBVNL, other utilities operating in the State have already achieved 100% electrification and nearly 24X7 power availability.
In terms of electrification, the State faces a challenge to electrify nearly 28.18 Lac (~56%) rural households and 1.8 Lac (~10.4%) urban households. JBVNL is faced with significant demand-supply mismatch with peak deficit of ~14.6% (310 MW) and energy deficit of about 6.0%, as in FY15.
In addition to achieving 100% electrification, the State has also planned to ensure 24 hours supply to all consumers, leading to an increase in energy consumption (sales) in JBVNL supply area from 7.6 Billion Units (BU) in FY15 to 17.3 BU in FY19 . The expected peak demand in JBVNL area is expected to increase to 3,778 MW in FY19.
The existing capacity tied up of JBVNL is 2,331 MW, including the 960 MW capacity from State GenCos and their share is reducing significantly due to ageing of the plants. State Gencos, JUUNL and TVNL are undertaking development of their respective projects, which would be available by 2023.
Considering the firm allocations, existing generation capacities and likelihood of commissioning of future capacities, the State utility is expected to experience a deficit of 488 MW in FY16, 864 MW in FY17, 990 MW in FY18 and 1,215 MW in FY19 against the peak demand in respective years.
Till date incurred expenditure is about Rs. 6685 Crore on the project. Phase I (540 MW) is in advanced stage of completion.
Time required to complete Phase I is about 18 months as estimated by MECON.
Boiler Turbine Generator (BTG) has been supplied by BHEL (Sturdy equipment with continuous support) and Balance of Plant (BoP) is from other reputed domestic contractors, such as Simplex, Alstom, Areva etc.
92% of the land (605 acre out of 664 acre) required for the Project has already been acquired. Balance land is government land and has been earmarked for the project.
GoI Central Water Commission DVRR unit has given water allocation approval for the entire capacity from Damodar river.
Railway connectivity is available as Tori – Shivpur line is passing by.
FSA with Central CoalFields Ltd. for Phase I is in place but needs to be renewed. Chittarpur coal block was allocated for the phase II earlier, the particular block is going to be re-auctioned in September, 2017
Hoogly: 476 km
Kolkata: 486 km
Ranchi: 97 km
Patna: 241 km
Ranchi: 94 km
Requirement of around 7,000 workers during project completion phase over 18-24 months
Stable employment for ≈ 2,500 workers upon project completion
Foster growth for local vendors & service providers (indirect employment of around 50,000)
Substantial portion of power generated may be sold to JBVNL – State Discom at regulated tariff. Balance power can be sold on merchant basis or at regulated tariff to any other state utility subject to requisite agreements
State fiscal benefit
Huge potential tax revenues after project commission
Excise duties and other fiscal revenue accrual to State Government
Multiplication effect on state economic output due to increased power generation
Proposed 1080 MW capacity addition will help towards goals of 24x7 Power for All Program & socio-economic development in rural areas
Development of Educational and Health related facilities
Opportunities for youth as there will be requirement of skilled workforce and to train them new ITIs and similar institute will come up.
Arcil has disturbuted 500 Woollen Blankets, 250 Tarpaulin & 500 Eco Friendly Smoke less stove to the local villagers around the site, who were affected by the closure of the plant.
Weekly health camp is scheduled for the villagers around the site.
aCTIVITIES cARRIED under csr:
Support to the destitute
Arcil (Asset Reconstruction Company (India) Limited, is sponsored by Banks like State Bank of India, IDBI Bank, ICICI Bank and Punjab National Bank along with other multiple Banks and FIs. Arcil has been established to acquire financial assets from banks and financial institutions with the objective of focused management of these assets and maximization of recovery. Arcil is registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) as a Securitization Company and Reconstruction Company and is a financial institution within the meaning of section 2(h)(ia) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
Tel (Board): + 91 22 6658 1300
Tel (Board): + 91 22 6658 1300
The Contents & Information contained in this brochure are intended for general marketing purposes only and should not be relied up on by any person as being complete or accurate. Interested parties are advised to conduct their own due diligence before taking any decision on the information mentioned in the brochure
Asset Reconstruction Company (India) Ltd.
The Ruby, 10th Floor, 29 Senapati Bapat Marg Dadar (West),
Mumbai : 400028 Tel: +91 22 66581300/399
Corporate Communication, Arcil