SJVN Ltd, in a stock exchange filing, had said that its Buxar thermal power project in Bihar has reached financial closure.
The 1,320-mw Buxar thermal power project is being implemented by SJVN Thermal Pvt Ltd, a swholly-owned ubsidiary of SJVN Ltd.
The financial closure for the project was reached on November 26, 2020 when the total debt of Rs.8520.92 crore was tied up through an equal contribution by lending agencies Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
Thermal foray
SJVN Ltd (formerly Satluj Jal Vidyut Nigam Ltd), after gaining tremendous experience in the hydropower sector – it has developed the 1,500-mw Nathpa-Jhakri hydropower project in Himachal Pradesh – decided to foray into thermal power through the Buxar project.
In January 2013, SJVNL entered into an agreement with Bihar State Power Holding Company Ltd and Bihar Power Infrastructure Company Ltd, for setting up the Buxar thermal power project. The coal-fired power plant equipped with two supercritical units of 660 mw each is coming up in Chausa village of Bihar’s Buxar district.
Accordingly, in July 2013, SJVNL took over Buxar Bijli Company Pvt Ltd, as its wholly-owned subsidiary and renamed it to SJVN Thermal Pvt Ltd. Buxar Bijli Company Pvt Ltd, it may be mentioned, was a special purpose vehicle promoted by Government of Bihar and IL&FS to implement the Buxar thermal power project on build-own-operate (BOO) basis, through the selection of developers.
Home state Bihar will be entitled to 85 per cent of the electricity generated by the Buxar thermal power plant.
Current status
The Buxar thermal power project is currently under active construction. The entire land required for the main power plant and associated facilities has been acquired. The total capital expenditure on the project stood at Rs.1,056 crore, as of October 31, 2020.
Transmission Infrastructure
There is reportedly some impediment with respect to the transmission infrastructure. Following lack of clarity and agreement over the entity responsible for transmission infrastructure associated with the Buxar plant, in September 2020, the Central Electricity Authority agreed in principle that the transmission line for evacuation of power from the Buxar thermal power plant busbar to the closest grid substation of the state transmission utility (STU) will be constructed by Bihar State Power Transmission Company Ltd (BSPTCL). The matter is currently under discussion by all parties concerned.
EPC Contract
In June 2019, Larsen & Toubro’s (L&T) Power business was awarded the EPC contract for the Buxar thermal plant. The order value, though not exactly known, is over Rs.7,000 crore.
Under the contract, L&T will be responsible for design, engineering, manufacture, procurement, supply, construction, erection, testing & commissioning of the thermal power project on turnkey basis.
The scope of supply includes steam generator, steam turbine generator, electrostatic precipitator, NOx control system, and flue gas desulphurization (FGD) system.
Additionally, the firm will provide complete balance of plant (BoP) systems including raw water intake system, make-up water system, coal & ash handling system, ash dyke, complete E&I system including switchyard and complete civil, structural and architectural works.
Featured photograph (source: psuconnect.in) shows officials of SJVNL, STPL, PFC and REC at the financial closure agreement signing event.
