Dholpur Thermal Power Project (702.7 MW)

The Govt. of Rajasthan (GOR) had sponsored M/s RPG Enterprises through MOU route for the installation of 788.5 MW, now revised to 707.2 MW , combined cycle, naphtha based, base load station at Dholpur. A separate company has been registered as RPG Dholpur Power Company Ltd. under companies act 1956. Authorisation from GOR under section 18 (A) of Electricity (Supply) Act,1948 to Build ,Own ,Operate and Maintain the power station has been issued. PPA had been signed for 788.5 MW on 26.8.96. The Govt. of India has allocated Naptha for 635 MW capacity (793000 MT per annum) for the above project for which FSA has been signed with IOC on 26.12.97. All statutory requirements and clearances have been obtained by M/s RPG. Techno Economic Clearance (TEC) had been issued on 12.3.98 by CEA. TEC had been issued for the project cost of Rs.2294.07 Crores (at US$1=Rs.39.50). 350 acre of land has already been acquired for the project by the company.

Power evacuation system has been finalised by RSEB in consultation with CEA at a total cost of Rs. 309.5 crores.

Substantial progress shall be achieved only after the financial closure is achieved. The project shall be commissioned within 28 months from the financial closure.

Current Status : Owing to the change in foreign currency denomination of debt component and its EPC contractor, the company has now submitted amendment to DPR on 14.10.99. This amendment to DPR is under consideration of RSEB/GOR.

Barsingsar Lignite Power Project (2x250 MW)

International competitive bids were invited for selection of the IPP on Build, Own, Operate and Maintain (BOOM) basis for 2x240 MW lignite based power project at Barsingsar in distt. Bikaner with their captive mines. This project was conceived to operate on Barsingsar lignite for initial 15 years and thereafter on lignite reserves of Gurha, Palana and Bithnok. The Govt. of Rajasthan have declared M/s HDC, New Delhi on 30.8.96 as sponsor for setting up the above project. The Power Purchase Agreement and the Implementation Agreement have been signed on 16.12.96 with M/s HVCL, New Delhi ( A generating Company promoted by M/s HDC under the Companies Act 1956).

Current status : All major clearances/approvals have been received for Power Plant and Mining. TEC has been issued by the CEA on 20.4.98. CEA has reduced the capital cost by Rs. 361.00 crores based on cost data available with them, as M/s HVCL did not furnish any cost estimates/ EPC cost. The Company is disputing the TEC mainly on account of reduction of capital cost and has returned the same in original to MOP, GOI through letter dated 25.4.98 for review by CEA and issue of revised TEC. Main contention of the Company is that TEC should be revised on tariff based project instead of capital cost and also the provisions of determination of transfer price of lignite from 16^th to 30^th year given in TEC is unacceptable. The CEA, while issuing TEC has reduced Estimated Capital Cost of the project. After consideration of Company's representation, the Secretary CEA, New Delhi vide GOR/RSEB letter dt. 12.6.98 and RSEB letter dt. 29.6.98 has been requested to review the certain aspects of TEC. Reference to Ministry of Power, GOI to approve deviation in norms/ grant suitable exemption under clause 3 of GOI notification dt. 30^th March, 1992 have been made by Govt. of Rajasthan vide letter dated 30^th March, 1999. Further to this, certain additional observations as raised by CEA were replied by GOR vide letter dated 27.8.99. M/s HVCL vide letter dated 12.11.99 referred in the minutes of meeting held on 15.11.99 at MOP, New Delhi, are agreeable to surrender these deviations in the overall interest of the project. The deviation has been reviewed by RSEB and reply sent to GOR vide letter dt. 3.12.99. The revised TEC is still awaited.

On the request of the firm, date of financial closure as per PPA had been extended upto 15.1.99 (second extension) and IA upto 1.8.99. The firm has been further informed that no further extension will be given and this extension is also without any additional financial liability on GOR/RSEB. M/s HVCL has conveyed unacceptability of these conditions. The project is likely to be commissioned within 38/42 months from effective date (i.e. Financial Closure)

Transfer of land and other assets created by M/s NLC is under consideration of GOR/NLC.

Further progress will be achieved after the acceptance of TEC by M/s HVCL and other associated issues are resolved and financial closure is achieved.

Jalipa and Kapurdi 2x300 MW (Each) Lignite Mining Cum Thermal Power Project

Through ICB West Power , Jaipur has been declared as sponsor vide GOR letter dated 13.11.96 for the installation of 2x300 MW each for Jalipa Lignite mining cum Thermal Power Stage-I and 2x300 MW Kapurdi Lignite Mining Cum Thermal Power Project in distt. Barmer.

Negotiations of Power Purchase Agreement and Implementation Agreement are in process.

EIA/EMP study has been completed by M/s NEERI and reports have been prepared .

Survey for the corridor for laying the pipeline from Indra Gandhi Canal Project to Barmer Project site has been completed by Geological survey of India

Status of liquid fuel based Small Power Projects

Background : RSEB had invited International Competitive Bids (ICB) in Sept.'95 from Private Sector for setting up of Small Power Plants in Rajasthan. 66 bids received. The lowest offer of M/s. BPI Ltd. at the total tariff of Rs. 2.10/Kwh was accepted by RSEB/GOR. This tariff consisting of fixed cost component of Rs. 0.73/Kwh and variable cost component of Rs. 1.37/Kwh . The fixed cost component was to escalate @ 1.5% Per annum from COD of the complex. The variable cost component is to vary in proportion with landed prices of liquid fuel with base date as on 1.11.95. No F.E. protection was provided. Accordingly, LOI was issued by GOR in favour of M/s. BPI Ltd. on 15.11.95.

This approved tariff was offered to all the other bidders of the Small Power Plants as well as to the bidders of 100 MW Power Projects for which competitive bids were invited separately and offered tariff was found on higher side. Later on, it was decided by RSEB/GOR that this offer be considered bench mark and also extended to non-bidders who accept the above tariff and terms and conditions.

Accordingly, 13 LOI's were issued to 12 developers for total capacity of 2646 MW on above terms and conditions. 24PPA's were executed by 18 Generating Companies formed by these developers for total capacity of 2646 MW.

Fuel Allocations : As per new liquid fuel policy, the existing ceiling of 12000 MW Fuel allocation (1415 MW for Rajasthan) applies now only to Naptha and not to LSHS/FO. As such 200 MW Capacity fuel allocation of LSHS/FO allocated to four IPPs did not form part of the Naphtha allocation and become surplus for reallocation . This quantity has been allocated to joint venture of M/s HZL and M/s. RSMML (100 MW) for their Captive Power Plant and M/s. RSPCL (105 MW) for Mathania liquid fuel- Solar Hybrid project by GOI on the recommendation of GOR.

Current status : Govt. of Rajasthan vide order dt. 4.12.98 & 23.12.98 has constituted a Cabinet Sub-Committee to examine various issues relating private power project. The committee in its 1^st and 2^nd meeting held on 24.12.98 and 30.12.98 has discussed tariff/non tariff proposal of M/s Chambal Power Ltd. and decided that the deviations sought by M/s Chambal Power Ltd. namely front loaded and restructuring of tariff, charges for deemed generation upto 85% PLF at the revised fixed charges be accepted. M/s CPL be requested to furnish Development Security B.G. of Rs. 75 lacs within 15 days of formal communication of State Govt. decision. It was also decided that deviations accepted in the case of M/s Chambal Power Ltd. be offered to all other IPPs and if the same are accepted by them and development security B.G. of Rs. 75 lacs is furnished then PPAs be amended accordingly but total capacity should not exceed 575 MW. In case IPPs do not show serious interest in executing the project and have not been given fuel allocation or have been given insufficient allocation then refund of cash development security be allowed without any deduction. In other cases examination on individual basis be made and appropriate decisions taken at the level of Energy Minister.

GOR has accepted the recommendations of the Sub-Committee. Revised proposal has been sent to M/s Chambal Power Ltd. and other liquid fuel power producers.

As per GOR directives, out of 24 PPAs, 19 PPA have been terminated and only the following PPAs are in force

• M/s Chambal Power Ltd. 166 MW
• M/s Indo Cale Power Venture 100 MW
• M/s Peeraj Power Gen. Ltd. 150 MW
• M/s DLF Power Ltd. 2x100 MW (approval has been given for switching over to Lignite fuel in Barmer distt.)

In view of decisions of GOR, the developers were requested to furnish development security of Rs. 25 lacs in cash and Rs. 75 lacs in the form of B.G. Now M/s. Chambal Power, M/s. Peeraj Power & M/s. Indo Cal have furnished required BG of Rs. 75 lacs as Development Security. GOR have also requested MOP,GOI to increase fuel allocation of M/s. Chambal Power, M/s Peeraj Power & M/s Indo Cal to 166MW capacity each from existing allocation of 130 MW,100 MW, &100 MW respectively. GOR have recommended to MOP, GOI to extend the date of Financial Closure up to 31.3.2000 in respect of M/s Chambal Power, M/s. Peeraj Power and M/s. Indocal . M/s Chambal Power Ltd. have proposed several amendments in the PPA which are under examination.

Solar Energy Power Projects

To explore Solar Energy by setting up solar Energy based Power Projects, International Competitive bids (ICB) were called by REDA and LOIs were issued to the following three developers :-

Against ICB, M/s Energen International Ltd. offered the lowest tariff for solar energy based power plants up to 42% PLF. Solar energy based power plants normally does not have 42% PLF and as such this rate was accepted and were offered to other bidders. M/s Amoco Enron Solar Power Development of USA and M/s Sun Source India Ltd. accepted the tariff and have executed PPA with RSEB.

The proposal for tariff of M/s Energen International Ltd. is under negotiation and the draft PPA is under consideration of the board as well as with the company.

M/s Sun source India Ltd., has signed PPA on 26.2.1996 for 50 MW SPV Power Plant. This plant will be set up at Agoria village Distt. Barmer. For this project 445 acres of land has been acquired. Vide their letter 12.6.98 they had informed that due to U.S. sanction there will be delay in implementation of the project. However now vide their letter dated 5.11.99 they have informed that they have established a 5 KW demonstration Solar PV Power Plant which is supplying energy to RSEB Grid from 3.11.99.

M/s Amoco Enron U.S.A. had signed PPA for 50 MW SPV Power Plant. This plant will be set at village Mokala, distt. Jaisalmer. They have acquired 350 Bighas of land. However there is no substantial progress thereafter.

There is also a proposal from Israel for Survey and Investigation on 'Solar Energy Tower'.

2 MW Wind Energy based power Project being set up by RSPCL

To promote the utilisation of non-conventional energy sources a policy has been approved by the Govt. of Rajasthan. Under this policy Rajasthan State Power Corporation Ltd. has set up a Wind Energy based Power Plant at village Amarsagar Distt. Jaisalmer. RSEB has executed a PPA for purchase of energy generated at this power plant with RSPCL on 12.3.99.

The energy generated at the Wind Energy based Power Project will be purchased at a base rate of 2.75/KWh for 1998-99 and this base rate will be increased by 5% every year for 10 operational years. Thereafter the rate will be mutually settled between RSEB and RSPCL. The minimum period of agreement is 20 years, or less if desired by developer. However, this agreement may be extended on mutual consent. The project was dedicated to the Nation on 21.10.99 by Hon’ble Chief Minister, Rajasthan.

PPA has also been signed with RSPCL on 14.12.99 for purchase of energy generated at 2 MW Wind Energy based Power Plant to be set up at Devgarh, Distt. Chittorgarh and the tariff of energy contemplated is Rs. 2.8875/unit, as per PPA, for current year. This basic rate will be increased at the rate of 5% every year on first April of the year for a period of ten operational years. Thereafter the Rate of Increase shall be mutually settled between RSEB & RSPCL.

M/s RSWML of LNJ Bhilwara Group is setting up a 86 MW Hydro Electric Power Project at Malana in Himachal Pradesh. The company has proposed to wheel the power generated at Malana Hydro Electric power project to their industrial units in Rajasthan through HPSEB,PGCIL and RSEB system. Board has executed a Wheeling and Transmission Agreement with M/s Malana Power Co. Ltd. on 6.10.99. The company will provide 14% of energy wheeled to its user industries as free energy to RSEB against wheeling charges and T&D Losses.

Captive Power Plant Policy

M/s ANITA IMPEX LTD.

Letter of intent was issued to M/s Anita Impex Ltd. vide letter dated 5.11.97 for setting up of 100-150 MW liquid fuel based Captive Power Plant under 65:35 policy of the GOR/RSEB in Sirohi/Jodhpur district under section 44 of the Electricity Supply Act 1948. A reference was made to CEA for consultation under section 44(2) of the Electricity Supply Act 1948. CEA has suggested to obtain permission under section 29. In view of this RSEB/GOR has reviewed the PPA and the GOR has conveyed approval that instead of M/s Anita Impex Ltd. supplying 35% power at half the prevailing H.T. rates to RSEB, the company would provide 17.5% of power free of cost to RSEB for wheeling and T&D Losses and also grid support to the captive consumers. Agreement for Transmission & Supply of Power with M/s Anita Impex Ltd. has been signed on 11.10.99.

M/s RSMML+HZL

100MW project at Maton (Udaipur) The proposal of setting up of a Captive Power Plant under joint venture of RSMML- HZL for 100 MW at Maton is for supply of power to their industrial units through their dedicated feeders for Debari Zinc Smelter plus Maton Mines of HZL and Jhamarkotra mines of M/s RSMML as well as supply to their chanderiya lead zinc smelter, Rajpura Dariba Mine, Rampura Agucha Mines & Zawar Mines through RSEB’s network. Fuel allocation for 100 MW has already been accorded by MOP on dt 31.7.98.For the power transmitted on RSEB’s transmission system, they shall bear wheeling charges plus T&D losses by supplying free energy as per revised CPP Policy notified by GOR on 15.07.99. The agreement for transmission & supply of power is yet to be signed. GOR vide its letter dt. 14.12.99 has accorded approval for setting up of above plant in joint venture.

60 MW project at Kapasan (Chittorgarh) M/s HZL vide letter dt. 22.2.99 & 3.8.99, 27.10.99 proposed to establish 60 MW captive power plant in the premises of the new zinc smelter at Kapasan in Distt. Chittorgarh. The proposal has been approved by GOR vide its letter dt. 13.12.99.