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TATA Power Expects to Complete Modernization Work of One of The 500 MW Units

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Core prompt: PTI reported that TATA Power expects to complete modernization work of one of the 500 MW units at its long running Trombay thermal plant that would allow us

PTI reported that TATA Power expects to complete modernization work of one of the 500 MW units at its long running Trombay thermal plant that would allow use of coal as a fuel for electricity generation, by early 2015.

However, this 500 MW unit which can now run only on oil and gas is part of the total 1,580 MW installed capacity at the Trombay thermal plant that supplies power to Mumbai.

Mr S Padmanabhan executive director of TATA Power in an e-mailed statement said that "We see costs of oil and gas rising and thus have proposed modernisation which will help reduce costs and ensure higher utilisation of capacity."

According to TATA Power, the modernization work of unit 6, having 500 MW capacity is expected to be complete by early 2015.

The country's largest private power producer would invest INR 1,174 crore toward modernization, that would allow the use of coal to generate power from the unit.

The statement said that "The dire need for modernization has risen due to unavailability of natural gas which has resulted in TATA Power being dependent on expensive fuel like oil to run its unit 6."

It said that further, a shortage of low sulphur oil from local refineries and spiralling prices of imported oil and gas have led to significant escalation in the absolute cost of power generation from unit 6.

As a result, the unit's Plant Load Factor a measure of operational efficiency is around 50%.

TATA Power said that "This has necessitated modernization, thus ensuring additional option of coal firing for optimum utilization of the existing power generation infrastructure."

It said that "The modernization would help in utilizing the full capacity of 500 MW at best operating efficiency besides reducing "fuel cost and thus help lower tariffs for Mumbai customers".

 
 
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