EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

1.0 BACKGROUND & OBJECTIVE

Coal and Oil (C&O) Group – the Rs. 2500 cr integrated energy Group with
interests in coal trading, mining, shipping and logistics is implementing a
1200- MW coal fired thermal power station near Tuticorin, in the State of
Tamil Nadu. The proposed project shall be developed, financed, constructed,
commissioned, operated and maintained through a Special Purpose Vehicle
(SPV) titled – “Coastal Energen Private Ltd.” (ENERGEN) a C&O Group
Company.

ENERGEN propose to set up a 1200 MW power plant using combustion

technology capable of burning of solid fuels. The objective of the study is to
establish the need for this project, detailing out the feasibility of the project,
clearances and studies required to be carried out, the techno-economic
justification for selection of Plant and equipment, financial analysis for
arriving at the cost of generation, expenditure phasing.

ENERGEN have appointed TCE consulting Engineers Ltd. as consultants for

preparation of this Detailed Project Report. This Detailed Project Report
would serve as an input document for Project appraisal, for procurement of
loans, obtaining statutory and non statutory clearances as also serve as the
base document for preparation of the RFQ & RFP documents towards award
of work for the project.

2.0 PURPOSE

The purpose of this report is to establish the technical feasibility and project
cost estimates of the proposed 2x600MW capacity coal fired sub critical
thermal power plant near village Melamaruthur in the district of Tuticorin,
Tamil Nadu state.

This detailed project feasibility report highlights the details of the selected
site, availability and use of sea water to meet the water requirements,
technical features of the main plant equipment, coal and ash handling
systems, electrical systems, evacuation of power, environmental aspects,
 estimates of project cost at power station bus, schedule for project
implementation of the proposed thermal power project.

3.0 SCOPE

The scope of this detailed project report covers the following:

a) Review of the planned generation capacity vis-a-vis power and energy

requirements of Tamil Nadu State and Southern Region for justifying
the need of proposed 2x600MW project.

b) Study of the selected site and establish the feasibility for the installation
of 2x600MW coal-based thermal power plant considering topography,
accessibility by rail and road, availability of sea water to meet the plant
water requirements, power evacuation plans, availability and transport
of fuel required for the plant, space availability for ash disposal and
general environmental aspects.

c) Preparation of plant layout and general arrangement drawings.

d) Details of the major aspects of the proposed plant, general design

philosophy and salient technical specifications of the following major
equipment/systems for the proposed 2x 600MW unit installation:

i) Steam Generator and auxiliary systems

ii) Turbine Generator and auxiliary systems

iii) Water systems

iv) Coal storage and handling system

v) Ash handling system including ash disposal system and a

brief outline for utilization of ash generated in the plant.

vi) Fuel oil handling and storage system

vii) Other mechanical balance of plant systems.

viii) Electrical systems

ix) Power evacuation

 x) Instrumentation and Control systems.

xi) Civil and structural works.

e) Environmental aspects.

f) Preparation of project implementation schedule

g) Project cost estimates.

4.0 NECESSITY OF ADDITIONAL POWER PLANT

Based on the details of load forecast and assessment of generation capacity

duly taking into account the realistic planned additions to the grid and the
assistance from the plants in the Central Sector, it is anticipated that
particularly with projected demand, India would experience a deficit in
generation capacity of about 12,922 MW by the year 2011-2012. Hence, with
the installation of 2x600MW thermal power plant and by exporting the
generated power through interstate grid, the power shortage can be
addressed to a certain extent.

FEATURES OF THE PROPOSED POWER PLANT LAND

(a) ENERGEN has identified the required land of about 1100 acres for the
proposed power plant. The proposed power plant site is located near village
Melamaruthur in the district of Tuticorin, Tamil Nadu state. The total available site area
of about 1100 acres is adequate for 2x600MW (and for further expansion) for main
plant, power house, transformer yard, switch yard, CW system, Coal handling plant,
water treatment plant, water reservoir, guard pond and ash disposal area as shown in
the Plot plan including green belt. However for coal stock yard for future units,
additional space needs to be identified along with ash disposal area.

(b) Out of the total of about 1100 acres of land, major portion of the land
belongs to private owners. The proposed land is barren, fallow land, single crop
cultivation in patches. There are no major settlements/ habitation / forestry. Hence no
rehabilitation and resettlement is envisaged.

5.0 SITE CHARACTERISTICS

5.1 LOCATION OF SITE

The project is proposed to be set up on the eastern coast of South

India in Tuticorin district, Tamil Nadu state. The identified site is located
about 4 km from NH 45 B near Melamaruthur village in Ottapidarum
Taluk at a latitude of 80 54’ 35” N and longitude of 780 8’ 40” E. The
nearest railway station is Milavittan (Broad Gauge), 13 Km from the
site. The site is about 3.5 km from the sea. The site is located about 18
Km from Tuticorin town; 23 Km from the Tuticorin Port and about 26
Km from the airport.

5.2 WATER

Sea water would be pumped from sea to the power plant using sea
water intake pumps. The intake pump house will be located on the
shore and this pump house will receive water through a channel drawn
from the sea. Around 4.0 km pipe line is proposed to be laid from intake
pump house to plant site. ENERGEN has already applied to the
concerned authorities (like CRZ etc) for permission for withdrawal of 84
MGD sea water. Permission will have to be taken from appropriate
authorities for crossing National highway and railway lines if required.

Sea water will be directly used for condenser cooling and will be
treated in a desalination plant to be used for SG feed cycle make uo,
plant service water and potable water purposes. The cooling tower
blow down along with RO rejects will be led back to sea. through a
separate outfall channel arrangement.

5.3 COAL

The estimated coal requirement is about 4.8 MTPA based on the

design calorific value of 3932 kcal/kg & 80% PLF. It is proposed to
utilise imported and indigenous coal. Design coal will be the blend of
imported and indigenous coal (50:50).

Coal is imported to the plant through an external coal jetty. The coal will
further be transported through conveyors to site. Alternate provision of
transporting coal through railways will also be made available. Coal is
 also proposed to be transported to site through trucks from the port.

5.4 POWER EVACUATION

Power generated in the power station is proposed to be evacuated at

400 kV level. For this purpose, an outdoor type, One and half breaker
scheme, 400 kV Switchyard will be provided at the power station. The
proposed scheme for power evacuation is shown as a single line
diagram.

A detailed electrical network power system study needs to be carried

out through for finalizing the details of the receiving end substations as
well as for finalizing the number of lines. A separate survey for the
transmission line route survey has to be carried out to establish to
transmission line length and the right of way.

5.5 POWER UTILISATION AND SALE OF POWER.

The power generated will be sold through the Power Trading Agencies
using Inter-State transmission network

6.0 MAIN PLANT EQUIPMENT

6.1 STEAM GENERATORS

The steam generators of 2X600 MW units would be 100 % coal fired

and each unit would be rated to generate about 2060 t / hr of
superheated steam at 175 ata pressure and 540°C temperature. The
SG would be of two pass design, assisted circulation, radiant, single
reheat, balanced draft, dry bottom, semi-outdoor type. The reheat
steam temperature would also be 540°C. The steam generators would
use Light Diesel Oil / Heavy Furnace Oil as start-up and supporting fuel
at low boiler loads..

6.2 STEAM TURBINE GENERATORS

The steam turbines would be a three cylinder tandem-compound

reheat extraction condensing type machine, driving a turbo-generator
at 3000 rpm to generate 600 MW continuous output at 0.85 power
 factor at the generator terminals, with throttle steam condition of 170
ata and 5400C and 0.096ata back pressure. The turbine generator
sets with all auxiliary and feed cycle equipment would be located
indoors.

6.3 GENERATOR

The generators would be rated to deliver 600 MW, at 20 kV, 50 Hz,

0.85-power factor, at 3000 rpm. The generator winding would be star
connected with the phase and neutral terminals brought out. The
generators will deliver rated MVA output under +5% variation in voltage
and ±2% variation in frequency. The star point of the generators would
be connected to earth through an earthing transformer, the secondary
of which will be loaded by a resistance.

6.4 COAL HANDLING SYSTEM

The coal handling system envisaged would be capable of handling coal

at the rate of 1800 tonnes / hour and would consist of two streams of
conveyors from stockyards to boiler bunkers, one operating and the
second one being standby. Single stage crushing has been envisaged
as it is expected that the size of coal as received would not exceed
-300 mm. the entire coal handling plant has been conceived to have 2 x
100% streams. Unloaded coal from bottom discharge Rail wagons
(BOBR) will be led to the track hopper from where the conveyor belts
(fitted below the hopper) will supply coal to the crushers. Crushed coal
will be either conveyed directly to coal bunkers or to crushed coal stock
yard as per requirement. Track hopper will be of RCC construction with
a horizontal side angle of 650. Structural steel shed with C.G.I roofing
and side sheeting will be provided over track hopper to prevent direct
entry of rain water into the hoppers.

6.5 ASH HANDLING SYSTEM

The system adopted for bottom ash removal would be scraper

conveyor system and dense phase pressure pneumatic system for fly
ash removal. Fly ash is proposed to be evacuated by pneumatic
(pressurized) system and stored in fly ash storage silos for onward
 transportation to cement plants and or other industrial consumers
through covered trucks. Provision of disposal in wet form using lean
slurry disposal system would also be provided for fly ash. The bottom
ash will be cooled, crushed to –20mm size and sent to bottom ash silo.
From these silos, bottom ash will be collected in covered trucks and
sent outside for filling up of low lying areas and the balance will be
conveyed in a slurry form for storage in ash pond.

7.0 ENVIRONMENTAL ASPECTS

The power plant is proposed to use imported coal with low Sulphur content.
Single Chimney with twin-flue of 275 meter high RCC stack is proposed to
be provided to meet the requirements of the environmental regulations. The
steam generators would be provided with low NOx burners and hence the
emission of oxides of Nitrogen from the steam generator would be minimum.

The steam generators would be provided with electrostatic precipitators to

limit the particulate matter in the flue gas to 50 mg/N.cu.m with all fields in
service and 75 mg/N.cu.m with any one field out of service, as stipulated by
Environmental Regulations. Environmental clearance for the proposed
project needs to be secured from the Ministry of Environment & Forest, New
Delhi / State Pollution Control Board. Rapid Environmental Impact
Assessment (REIA) and Comprehensive Environmental Impact Assessment
(CEIA) studies have to be completed and report submitted to State Pollution
Control Board and Ministry of Environment and Forests (MOEF) respectively.

Adequate provisions are proposed for neutralizing the effluents from the
water treatment plant. Effluents from the entire power plant are proposed to
be treated and reused in the power plant to minimize the make-up water
requirement.

8.0 PROJECT COST AND TARIFF

Total capital cost including the interest during construction for the proposed 2
x 600MW project is estimated to be Rs. 4297 Crores (Rs. 3.58 Crores/MW)
and the unit cost at 80% PLF is Rs 3.52 / kWh which has been calculated
considering 30 years of operation. Refer: Appendix 7.

9.0 PROJECT SCHEDULE

 Based on the expected deliveries of major equipment and estimated time
duration for design, engineering and construction, the commercial operation
schedule for the 1st unit is 27 months and 30 months for the 2nd unit for the
2X600 MW units. The project is proposed to be executed through a separate
contract for supply of steam Generators and steam turbine Generators and a
comprehensive EPC contract for all the Balance works or number of
separate packages for supply of balance of plant items. The erection of BTG
equipment and civil works will be carried out by a reputed contractor with
relevant experience. All the contracts will be finalised through competitive
bidding.

10.0 CONCLUSIONS

Based on the load forecast in the Southern Region, assessment of

generation capacity by private sectors who are capable of installing power
plants with an open policy of selling power to the other parts of the country
having deficits in power, the proposed power plant of capacity 2x600MW at
Tuticorin is viable.

The proposed power plant also has all the basic requirements essential for a
thermal power plant viz. land, water, fuel (coal) and power evacuation
facilities.

11.0 RECOMMENDATIONS

To ensure timely completion of the proposed project, it is recommended that

early action on the following activities may be initiated by ENERGEN.

(a) Discussions with Power Grid / TNEB regarding evacuation of power

from the proposed power plant and Finalization of Power Purchase
Agreements, with PTCIL, TNEB, concerned State utilities and other bulk
consumers etc

(b) Finalization of land lease agreement for power plant and ash disposal
area including additional area, corridors for coal conveyer and sea water
piping.

(c) Site geotechnical investigations and site contour survey studies

(d) Submission of application to MOEF clearance.

(e) Completion of Land and Marine Environmental Impact Assessment (EIA)

study and submission of same for obtaining NOC from the State
Pollution Control Board, Tamilnadu and MOEF, New Delhi.

(f) Route survey and alignment studies for laying coal conveyers, sea water
pipes and electrical transmission lines.

(g) Securing allocation of use of sea water from the concerned authorities.

(h) Right of way for laying pipe line from sea to the power plant.

(i) Approval of Civil Aviation Authority for installing 275 m high chimney

(j) Discussions with prospective Indian Financial Institutions, Foreign

Financial Institutions, external commercial borrowing agencies, Indian
commercial banks, reputed main plant equipment suppliers.

(k) Discussion with Railway authority for constructing railway lines from
Milaviattan station up to proposed project site.

(l) Fuel oil linkage to be established.

(m) Study for transportation of coal from external jetty to site including route
survey.

(n) Finalization of Coal Supply Agreement

(o) Project clearances from statutory authorities, Tamilnadu State Pollution

Control Board (TNPCB) and the concerned agencies of the Government
of Tamilnadu and India.

(p) Factory License from Chief Inspector of Factories Govt. of Tamilnadu.