Hinduja National Power Corporation Ltd (HNPCL) which is close to commissioning 1,040 MW (2 x 520) coal based sub-critical thermal power project in Visakhapatnam, Andhra Pradesh is facing the problem of non-availability of railway line for transportation of coal. HNPCL is planning to commission the Unit-1 by March 2014 and lack of railway connectivity is likely to leave the entire power plant stranded after completion. HNPCL is already on its knees with NTPC for its no-objection for transfer of its land for its dedicated railway line and permission of co-usage of NTPC’s existing railway line for interim period. Even after getting NTPC’s NOC for the proposal it may take 24-30 months for HNPCL to have its own railway sidings. However, HNPCL has not yet heard NTPC’s response for the proposal and so the uncertainty continues.
HNPCL is a special purpose vehicle promoted by Hinduja Group for setting up 1,040 MW thermal power project for which MoU was signed way back in 1992. However, due to lack of clarity on various policy issues and controversy surrounding Enron power project, the project was delayed and was in fact stalled in 2002. The project was again revived in 2008 and HNPCL awarded EPC contract to BHEL in 2011. The total cost of the project is estimated to be Rs. 5,545 crore being funded in Debt: Equity ratio of 75:25. The annual requirement of coal is 4.853 MTPA at 85% PLF and HNPCL has singed an FSA with Mahanadi Coal Fields Limited (MCL) for supply of 4.624 MTPA of coal. HNPCL had entered into PPA with APDISCOMS way back in 1998 and in May 2013 the company signed an MoU with them for continuation of old PPA.
