Sarda Energy & Minerals Ltd (SEML) is on course to shortly start commercial operations at its greenfield hydropower project in Sikkim.
In an investor presentation, SEML with business interests in mining, steel and ferro alloys, said that it has achieved grid-synchronization of both the 56.5-mw units of its upcoming 113-mw hydropower project in Sikkim. The plant, located on River Rongnichu, is expected to start commercial operations in June 2021 itself.
Power will be sold to a state power discom Chhattisgarh State Power Distribution Company Ltd (CSPDCL). The tariff of the 35-year power purchase agreement is being finalized, it is learnt.
The 113-mw Sikkim plant will be the largest in SEML’s current hydropower portfolio.
SEML is also developing a 24.9-mw hydropower plant in Chhattisgarh – a run-of-river scheme on River Rehar. The process of land acquisition and securing regulatory approvals is currently underway. Project financial closure is currently in progress, it is learnt. The project is targeted for commissioning by 2025, by current thinking.
Existing hydropower plants
SEML currently has an operational hydropower portfolio of nearly 30 mw coming from two assets, located in Uttarakhand and Chhattisgarh.
The Uttarakhand plant is a 4.8-mw run-of-river scheme on River Sarju and was commissioned in 2008. Power from this plant is being sold to the state discom at Rs.3.85 per kwh, under a 35-year PPA. There is a proposal to expand capacity at the Uttarakhand hydropower project by 3 mw.
The Chhattisgarh project, commissioned in 2017, is a 24.9-mw plant on River Gullu. SEML has a 35-year PPA with CSPDCL and has been selling electricity at Rs.5.21 per kwh, from this plant.
Featured photograph is a collage of actual project images related to the upcoming 113-mw hydropower plant of Sarda Energy & Minerals ltd, in Sikkim.
