Tata Power Trombay unit to make cheaper electricity

Tata Power said the cost of electricity generated by unit six at Trombay will reduce to Rs 4.48 from Rs 8.50 a unit, once the plant becomes coal-fired. The 500 MW unit is a multi-fuel fired facility that can be operated on oil and gas. Tata Power plans to modernise the unit at a cost of Rs 1,174 crore so that it can be made coal-fired. This benefit of the reduction in generation cost will be directly passed on to Mumbai consumers, the company said. Shortage of oil and gas has resulted in Tata Power being dependent on expensive fuel such as oil to run the plant. Tata Power said the proposed modernisation would also ensure higher offtake and uninterrupted supply to Mumbai. The modernisation will help use low-sulphur, low-ash, imported coal and will be achieved through addition of the latest coal-fired and pollution-control equipment. The fuel changeover will not require additional water or any other resource to operate plant.