Goindwal Sahib Thermal Power Plant

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The Goindwal Sahib power station is an 1,860-megawatt (MW) coal-fired power station in the state of Punjab, India.

Location

The aerial photograph below shows the plant near Goindwal Sahib village in the district of Tarn Tarn.

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Background

On its website in 2011, GVK stated that the project was 600-megawatt,[1] while a February 2011 investor presentation described the project as a 540 megawatt plant comprising two 270 generating units (units 1 and 2).[2] The Central Electricity Authority describes it as a 540 MW project.[3]

In its 2010-2011 annual report GVK stated that "during February 2011 your Company has executed a Memorandum of Understanding (MOU) with the Punjab State Power Corporation Limited for implementation of 1320 MW Power Project (Phase-II), in the State of Punjab. For this purpose GVK Power (Khadur Sahib) Private Limited, a SPV has been incorporated as a step down subsidiary through GVK Energy Limited to implement the Coal based thermal power project with super-critical technology, proposed to be developed in the additional land at the existing Goindwal Sahib site in Tarn Taran District, Punjab."[4]

GVK has lobbied for the the Punjab government to approve the expansion of the project by an additional 1,320 megawatts.[5] The company received a terms of reference toward this expansion (units 3 and 4) in 2011,[6] and completed an environmental impact assessment for the units in 2013.[7]

In April 2014 it was reported that GVK had approached India's NTPC to buy the Goindwal power station, as GVK has not been able to commission its newly constructed 2 x 270 MW units because it could not arrange coal from the two coal blocks allocated to it. The first unit was expected to be commissioned in August 2014.[8]

In May 2014 GVK said it will start power generation at its 540 MW Goindwal Sahib plant as soon as the station received a coal linkage, and had no plans to sell the facility to NTPC.[9]

In July 2014 the Punjab government said the Centre had agreed to grant coal to the 540 MW plant, enabling GVK to commence energy production.[10]

In August 2015 GVK Chairman GVK Reddy said the coal mine allocation to the Goindwal Sahib project had been cancelled. The company still planned to put the plant into operation, but commissioning is subject to allocation of coal.[11]

Unit 1 was commissioned in February 2016 and unit 2 in March 2016.[12] A Swiss company, IMR Metallurgical Resources, has agreed to supply coal from South Africa to the plant. The company also has been allotted 12 lakh tonnes of unused coal by Coal India Limited.[13]

With no further development or Environmental Clearance in over four years, and no mention on the GVK website, it appears that Units 3 and 4 have been abandoned.

Coal supply

GVK states on its website that coal for the project will be sourced from "the company’s own coal mines at Tokisud and Seregarha, Jharkand."[14] GVK has established another subsidiary, GVK Coal (Tokisud) Company Private Limited, to develop the Tokisud coal mine in Hazaribagh district in Jharkhand.[15][16]

On its website GVK states this plant will be supplied with coal from the "Tokisud and Sereghara mine blocks have mine-able reserves of 52 million tonnes and 100 million tonnes respectively." The company states that the "Tokisud Open Cast mining block, located 50 kms north-west of Ranchi City in the State of Jharkhand, is being developed into a captive coal mine."[17] Elsewhere on its website the company states that GVK Power (Goindwal Sahib) Limited is "developing a 600 MW coal based Thermal Power Plant at Goindwal Sahib, in Punjab. The Company has initialed the draft Power Purchase Agreement with Punjab State Electricity Board ("PSEB") in December 2006."[1] GVK has stated that the power purchase agreement runs for 25 years.[2]

In a February 2011 investor presentation GVK states that it has entered into a "Coal Transportation Agreement" with Indian Railways to transport coal to the plant. GVK stated that 2 million tonnes of coal a year would be supplied from the Tokisud coal mine and 1 million tonnes a year from the Seregarha coal mine.[2]

The coal mine allocation was cancelled by the Supreme Court in 2014.[18]

In August 2016, it was reported that the lack of a long-term supply contract for Units 1 and 2 was forcing GVK to procure coal through e-auctions. Due to the unsteady nature of supplies through e-auctions, the company has had difficulties maintaining continuous operations. The company reported: "Management has obtained coal linkage for six months, taken opinion for running plant on imported coal, tied up for importing coal and is mulling other options such as, obtaining coal linkage locally and has filed petition with Punjab Electricity Regulatory Commission (PSERC) for re-negotiation of terms of power purchase agreement such as rate revision, approval for using imported coal etc. claiming force majeure and change in law as envisaged under the Power Purchase Agreement."[19]

Project Details

Sponsor: GVK
Location: Goindwal Sahib village, Khadur Sahib taluk, Taran Taran district, Punjab
Coordinates: 31.3841396, 75.1465032 (exact)
Status:

  • Units 1 & 2: Operating
  • Units 3 & 4: Cancelled

Capacity:

  • Unit 1: 270 MW
  • Unit 2: 270 MW
  • Unit 3: 660 MW
  • Unit 4: 660 MW

Type:
Projected in service: 2016 (Units 1-2)
Coal Type:
Coal Source:
Estimated annual CO2:
Source of financing:
Permits and applications:

Resources and articles

References

  1. 1.0 1.1 GVK, "Investors", GVK website, accessed May 2011.
  2. 2.0 2.1 2.2 GVK Power and Infrastructure, "Investor Presentation", GVK Power and Infrastructure, February 2011, page 8.
  3. Monthly Report on Broad Status of Thermal Power Projects in the Country, Central Electricity Authority, September 2012
  4. GVK Power and Infrastructure, "17th Annual Report 2010 - 2011", July 2011, page 12. (Pdf).
  5. "GVK Group to expand capacity at Goindwal Sahib Thermal Plant", Business Standard, August 23, 2010.
  6. Terms of Reference, July 26, 2011.
  7. Environmental Impact Assessment, June, 2013.
  8. "Goindwal Sahib thermal plant on sale in Punjab," Indian Power Sector, April 1, 2014.
  9. "GVK awaits coal supply to start power plant in Punjab," wn.com, May 3, 2014.
  10. "Centre gives nod to coal linkage for Goindwal Sahib plant," Press Trust of India, July 4, 2014.
  11. "Will cut losses with new projects, airport revenues: GVK chief," The Hindu, Aug 18, 2015
  12. "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, March 2016
  13. "Finally, Goindwal Sahib thermal plant to get going," Hindustan Times, Jan 26, 2016
  14. GVK, "Thermal", GVK website, accessed January 2012.
  15. GVK, "Investors", GVK website, accessed January 2012.
  16. GVK, "Request for qualification notice", GVK Coal (Tokisud) Company Private Limited, June 2011.
  17. "Thermal", GVK website, accessed May 2011.
  18. "Power supply continues to pose a challenge," The Tribune, Dec 25, 2014
  19. "GVK's Goindwal Sahib power project faces coal hurdles," Business Standard, August 1, 2016

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