Foundation stone laid for first IGCC-based plant

Vijayawada: Dr R Chidambaram, Principal Scientific Advisor to Union Cabinet laid the foundation for India's first power plant using the Integrated Gasification Combined Cycle (IGCC) at Vijayawada Thermal Power Station [VTPS].

Union Minister of State for Commerce and Power Jairam Ramesh said that the power plant is of 125 MW capacity and being set up by BHEL and APGENCO on a joint venture basis.

He said that the project has major implications for India's energy strategy that has to reckon seriously with international concerns on global warning arising out of expanding coal use.

There are seven or eight IGCC plants in the 250-300 MW range in other countries like USA. But they all use low-ash coal, he added.

The Vijayawada plant will use high-ash Indian coals. It will cost around Rs 9,950 crore of which Rs 420 crore will come from BHEL and the balance Rs 530 crore from APGENCO and the project is scheduled for commissioning in mid 2011, he said.

India's coal reserves are estimated at about 250-billion tonnes and therefore coal will be the main source of power generation at least in the coming few decades. Coal is cruicial for India's energey security.

India's coal-based power generation capacity is expected to grow from the present 76,000 MW to more than 3,00,000 MW by 2030, he added.