Surat Lignite Power Plant – 2 x 125 MW Expansion Project
Surat Lignite Power Plant Expansion Project – Phase II (Unit 3 & 4) was awarded to M/s. Bharat Heavy Electricals Limited (BHEL) on EPC Contract basis. The project zero date starts from 31st March, 2006. The plant is expected to be commissioned in the current financial year. The environment friendly Circulating Fludized Bed Combustion (CFBC) technology is used for the expansion project also. The project will enable optimum utilization of certain infrastructure already available in the existing power plant.
Expansion of Lignite Mines (SLPP)
Along with the power plant expansion project, the company will also develop a new lignite mine adjacent to its existing mine, for which new mining leases and all necessary clearances including environmental clearance have been obtained. The new mines, where the cost of mining is going to be much lower than in the existing one, will reduce the cost of generation even in the existing power plant. The lignite mines of GIPCL have adequate exploitable reserves to support 1000MW generation.
The total cost of power plant and mining project is proposed to be financed on a 75:25 debt-equity ratio.
To mobilize the equity for the project, company came out with follow-on Public Issue of Rs.275 crores through Book Building route out of which Rs.75 crores of equity has been contributed by Promoters by participating in Book Building Process. Balance 200 crores have been mobilized from the market.
Expansion Phase - III - 500 MW At Surat Lignite Power Plant
Government of Gujarat has consented to allot 500 MW Expansion Phase-3 to Gujarat Industries Power Company Limited.
Underground Gasification of Lignite (UCG)
Corporate level Research & Development (R&D) activities and to help the State and Nation at large with alternative sources of Hydrocarbon, GIPCL is embarking on the Pilot Project activities of Underground Gasification to be carried out adjacent to its existing Vastan Lignite Mine.
In the above Underground Lignite Gasification process, the deep seated un-minable lignite situated at the depth of around 1000 feet shall be partially burnt to produce what is popularly called Syn-Gas at that depth itself and it could yield huge quantity of low calorific value Synthetic gas (mixture of H2 and CO) and can replace/ supplement the present needs of our energy / hydrocarbon needs for which we have to import high quantity of crude oil and natural gas.
For this project, the MOU with ONGC was signed in the year 2006 and GIPCL plans to complete the pilot project by the year 2010.