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Home > CGPL Mundra > FAQs

FAQs

What is the implementation status of 4000 MW Mundra Ultra Mega Power Project?

CGPL, an SPV formed for setting up and operating the 4000 MW Mundra UMPP has commisioned 800 MW sized Unit 1 and Unit 2. Work on Units 3, 4 and 5 of the project is on track and progressing well. 

 

What technology is the project using, and how does it differ from traditional technology?

Mundra UMPP is based on supercritical technology and has brought the first 800 MW sized super-critical unit to the country. This technology and the choice of unit sizes will help the project produce lower greenhouse gas emissions than regular coal-fired power stations. In addition, the choice of imported coal significantly lowers sulphur emissions. 

Supercritical technology will help the project achieve higher efficiency, which saves fuel and reduces greenhouse gas emissions. The greenhouse gas emissions per kilowatt hour of energy generated will be about 750 grams of carbon dioxide per kWh, as compared to India’s national average of 1,259 g CO2/ kWh for coal-based power plants. The world average is 919 g CO2/ kWh, while the average for OECD countries is 888 g CO2/ kWh. (Figures are for 2005.) The plant will emit 23.4 million tons of CO2 per year, substantially less than the 27million tons that a plant of similar installed capacity would emit if using conventional, less efficient energy technology.

As compared to any other subcritical power plant in India, this project will avoid burning 1.7 million tonnes of coal per year, thus averting carbon emissions of 3.6 million tonnes per year.

It is expected that India will continue to be dependent on coal to meet its power requirements because of the limited availability and high prices of gas, hydro, and other renewable sources. Hence the need of the hour is to promote thermal power projects that have lower greenhouse gas emission and superior performance than the average in India, as a way to help the country’s meet its large need for more electricity.

 

How efficiently is the supercritical plant at Mundra UMPP designed?

The design efficiency of the boiler for supercritical 800 MW is higher as compared to subcritical 500 MW boilers. The typical Main Steam Temperature and Pressure for Supercritical 800 MW units is 5680C and 251 bars; Re-heater Steam Temperature and Pressure for Supercritical 800 MW units is 5950 C and 60 bars; The typical Main Steam Temperature and Pressure for Supercritical 800 MW units is 5410 C and 178 bars; Re-heater Steam Temperature and Pressure for Supercritical 500 MW units is 5680 C and 40 bars. The above mentioned design improvements result in lesser fuel consumption per MW power output in 800 MW supercritical units than in 500 MW subcritical units.

 

The Mundra UMPP is using low-calorific value imported coal to cut its fuel costs for the project in the absence of tariff revision to reflect the change in Indonesian coal price. How is the trial going?

We have commenced blending and deploying alternate coal called eco-coal which is equally environment friendly and low in sulphur content, but is cost competitive and thus helps to offset cost. Upto 70% blending is being done to offset some of the cost impact due to steep increase in international coal prices and we plan to maximize this to reduce overall cost of fuel. Tata Power has also filed a petition with CERC and would await further proceedings and outcome.

 

How far can it help in reducing fuel cost per unit?

This is a partial solution that will mitigate large excursions in costs due to devaluation of Indian Rupee as well as in the costs of fuel. However this is not enough to achieve the break-even and as mentioned earlier we would not await outcome of CERC proceedings.

 

If the trial is successful, will it help the company to adopt this practice at other generating stations?

We will certainly try that but the result depends on the design and technology of the said plant. We have in a way learnt this out of our pilots at Trombay station.

 

How helpful are equipment specifications in absorbing the low-calorific value coal?

So far we have got good results and 70% blending has been used in the pilot.

 

How environment-friendly is the use of the coal low-calorific value at Mundra?

As mentioned earlier, the alternate coal is called Eco-coal that has been used and is equally environment friendly and low in sulphur content and therefore has significantly lower emissions.

 

Questions are being raised on the economic viability of Tata Power's showcase project -- the Rs 17,000 crore Mundra Ultra Mega Power Project (UMPP). While two units of 800 MW each have been commissioned, there is still a lack of clarity on whether tariff hike would be allowed by the electricity regulator. How do you respond to this?

The unexpected rise in coal price has not only affected our Mundra project but all imported coal based projects. Senior leaders from the industry met Hon’ble PM and requested PMO to resolve this issue. Further, Tata Power had contracted coal from Indonesia on terms, which were mirror of bid tariff for coal for CGPL. However, since Indonesian Government has changed the export norms for coal from their country, Tata Power can’t get imported coal based on contracted terms.

CGPL, a Special Purpose Vehicle of Tata Power developing 4000 MW Mundra Power Project has also filed a petition with CERC. The matter has been heard and the Commission has suggested that the concerned parties i.e. procurers and CGPL should meet immediately in order to explore a possibility of a specific solution. The Commission has kept the petition pending and has asked the parties to report on the outcome for it to decide on further course of action. CGPL is committed and would pursue on this advice and hopes to find an early resolution.

We are also exploring alternatives to mitigate the problems to the extent possible. We have commenced blending and deploying alternate coal called eco-coal, which is equally environment friendly and low in sulphur content, but is cost competitive and thus helps to offset cost. Upto 70% blending is being done to offset some of the cost impact due to steep increase in international coal prices and we plan to maximize this to reduce overall cost of fuel.

 

The Indonesian government's latest move to link mineral exports to international benchmarks has made future of all coastal imported coal–based projects bleak. Are you talking to the government and raising this issue?

As mentioned earlier, Senior leaders from the industry met Hon’ble PM and requested PMO to resolve this issue. Imported fuels (both Coal and gas) have become a challenge in terms of the cost of fuel and if not dealt early would be a lost opportunity for India, for EVER. The progressive governments elsewhere are not just aggressively scouting but are tangibly tying up Resources known to be available globally. India also needs to act fast and right away. Besides, it needs to create enabling policy framework wherein use of such imported fuels would be dealt with properly specially in terms of its commercial dispensation. Further, the rise in imported coal fuel prices due to regulatory issues in global markets including Indonesia would also need to be dealt lest developers would not create downstream investments here in India to use imported coal.

 

 

 

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