Madhucon Projects Ltd has started trial runs at unit one (150 MW) in the first phase of its Simhapuri thermal power plant project.

The 1920-MW project, located in Nellore district of Andhra Pradesh, is being developed in three phases. The first two phases' capacity is 300 MW each and the third, 1,320 MW .

Mr Nama Nageswara Rao, the Chairman of Madhucon Projects, told Business Line that the coal plant's phase one is generating about 50 MW now. Gradually, this will be scaled up up to 150 MW. The second unit will also be ready for synchronisation by month-end.

“We also plan to expedite the implementation of the second phase of the 300 MW unit. Majority of the works on the second phase have been completed simultaneously,” he said. “Typically, coal plants begin operations with smaller capacities. After stabilisation, the full generation capacity is achieved. We expect to declare commercial operations by March-end or first week of next month,” he said.

This coastal area project relies on imported coal. The company has made arrangements for coal from the Indonesia-based PTC . The plant has 60 days worth of fuel stock. While the initial arrangement is through the contracted purchase, down the line, the company expects to procure coal from its mines in Indonesia.

In December 2011, a consortium led by Madhucon received a letter of intent to set up a mine-mouth coal-fired power plant of 300 MW in South Sumatra, Indonesia.

>vrishi@thehindu.co.in

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