OPGG
was incorporated in 2007 with the objective of constructing a 2 x 135 MW
coal based power plant in Kutch, Guajarat. OPGG has procured the land and is
in the process of awarding the EPC contract. The Company has tendered on an
international basis for an EPC contractor and is in the process of
evaluating bids. An appointment is expected to be made shortly. Commissioning is to be achieved in the first quarter of 2010. Procurement of fuel supplies
The OPG Group has entered into an agreement with Knowledge Infrastructure Ltd (KISL) for the supply of coal from Indonesia. KISL is one of the largest importers of Indonesian coal in the country with a captive mine at its disposal.The Company has also entered into a MoU with Torvald Klaveness, a major Norwegian shipping firm, for the shipping of this coal.
Both OPGPG and OPGGG will use coal imported from Indonesia. Indian coal is less attractive given its high ash content and, whilst the plants can use Indian coal, Indonesian coal is preferable given its low ash and high moisture content, qualities which are relevant for power generation purposes. The high moisture content of Indonesian coal renders it significantly cheaper than its South African or Australian counterparts and the freighting cost from Indonesia is also lower.
