Tata Power said the modernisation programme of its 500-MW (unit 6) at Trombay will reduce the per-unit cost of electricity to Rs 4.48 from Rs 13.23.
The proposed modernisation programme, estimated at Rs 1,174 crore, is to make the unit, which uses oil and gas now, to a coal-fired one.
Impact assessment
The Shiv Sena organised a rally here on Friday to protest the change in fuel and charged that it would increase pollution levels in the thickly populated area.
Tata Power said an environment impact assessment (EIA) conducted by Tata Consulting Engineers had said modernisation would not lead to any additional pollution or emission in Chembur and neighbouring areas. Further, no additional water or any other resource was needed.
The company has also asked the National Environmental Engineering Research Institute (NEERI) to conduct an additional EIA, which is underway.
Tata Power said the modernisation plans would use low sulphur, low ash imported coal with pollution control equipment systems to maintain emissions at the current levels. Imported coal has significantly less amount of ash and sulphur, which are the main causes of air pollution, as compared to Indian coal.
The coal conversion of the 500MW unit will help reduce ground level concentration of pollutants by the pollution control equipment, it said.
S. Padmanabhan, Executive Director, Tata Power said, “For more than nine decades, Tata Power has served the city of Mumbai and has always continued to provide affordable electricity to customers while maintaining strong commitment to environment conservation. Tata Power’s unit 6 modernisation plan is an additional step in the same direction and we appeal to all stakeholders to support this customer and environment friendly move by Tata Power.”
At present, the peak power demand of Mumbai is about 3,400 MW, while generation is at 2,377 MW. The modernisation plan of Unit 6 has been necessitated by the increased demand and the unavailability of gas, besides spiralling oil prices, Tata Power said.
The 500 MW unit, which used to operate at 80 per cent PLF (plant load factor), is operating at about 50 per cent PLF for the last two years. The Trombay thermal plant has an installed capacity of 1,580 MW.