Athena Chattisgarh Power Limited

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In January 2008, the Chattisgarh Government, signed a MoU with Athena Chattisgarh Power Limited (ACPL) for development of a 1200MW coal-fired thermal power plant located near the village of Singhitarai in the Janjgir Champa District in the state of Chhattisgarh. The 1200 MW coal-fired sub-critical thermal power plant would consist of two Steam Turbine Generator sets of 600 MW each,two of Pulverised Coal Fired Steam Generators and associated balance of the plant. ACPL had executed Boiler, Turbine and Generator (BTG) contract with Dongfang Electric Corporation, China, and Balance of Plant & Civil Works contract with Abir Infrastructure Pvt. Ltd. Both the contracts had been entered into on a fixed price and fixed time basis.Indigenous coal would be used to fuel the plant and the coal linkage for part of the project capacity had already been granted. The project had also been accorded environmental clearance by the Ministry of Environment and Forest. The total land requirement for the project was 1012.85 acre, of which, ACPL had 857.81 acre under its possession. Whilst 150.5 acre of land has been acquired, ACPL had entered into a lease with Chattisgarh State Industrial Development Corporation (CSIDC) for the rest.Water requirement of 40cusec would be met from Mahanadi river at a distance of 23km by pipeline.Power would be evacuated to 400/765 KV pooling station of PGCIL at Kotra located at 24 km from the site. ACPL would construct the transmission line for the same. ACPL had entered into a Bulk Power Transmission Agreement with PGCIL. The primary fuel for the project was domestic coal, the total requirement of which was estimated at 5.2 million tons per annum (MTPA). ACPL had obtained a long-term coal linkage vide a Letter of Assurance from South Eastern Coalfields Ltd., a subsidiary of Coal India Limited, for ‘F’ Grade Coal to the tune of 2.747 MTPA, which would meet nearly 53% of its coal requirement. The remaining 47% of the coal requirement would be sourced from the captive mine block of Fatehpur East Coal Block (FEC) located at Chhattisgarh, which was awarded by the Ministry of Coal jointly to AIP Power Ltd., JLD Yavatmal Energy Ltd., R.K.M.Powergen P.Ltd., VISA Power Ltd., and Vandana Vidyut Ltd.The primary fuel supply points, i.e. coal blocks of SECL and FEC are located at a distance ranging 30 km–90 km from ACPL’s site. While SECL was already connected to the Indian Railways Network, ACPL was exploring options to link FEC to the network as well so that coal could be supplied up-to the nearest station. The coal block’s COD is proposed for October 13, 2013, i.e. 6 months prior to COD of ACPL’s power plant. Fatehpur East Coal Private Limited (FECPL), a Joint Venture Company was incorporated for the purpose of exploration of FEC block. With a share of 22% in the JV, ACPL would get 2.75 MTPA of coal, which would meet 47% of the net fuel requirement. The risks in jointly developing the mine with other players would largely pertain to the timely infusion of equity by all the players, which in turn would depend upon the progress of their respective projects. The JV, however, allowed for drawing of the coal by individual players depending on the progress of their respective power plants. The power generated from the 1200MW power plant was expected to be sold to entities including state electricity boards, state owned utility companies, power trading companies.As per the Implementation Agreement with the Government of Chattisgarh (GoC), ACPL is required to sell 39.41% of the power generated to GoC, of which 7.5% would be at variable charges and balance at a two part tariff as per CERC norms. Accordingly, on January 5, 2011, ACPL has entered into a long-term (20 years) PPA with Chhattisgarh State Power Trading Company Ltd (CSPTradeco) for approximately 445MW. ACPL has also signed a Power Purchase Agreement (PPA) with PTC India Limited on May 6,2009, for 150MW for a period of 25 years from COD. The tariff comprises two-part payment;