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HPGCL to lease 4 units of Panipat thermal plant
HPGCL is leasing 4 thermal units instead of going for renovation. The agency will operate the units for a period of ten years on the basis of competitive bidding.

HARYANA POWER Generation Company Ltd (HPGCL) has decided to lease four units of Panipat Thermal Plant on long-term basis.
HPGCL board in its 86th Board meeting, held on March 15 decided to engage an agency that will take over Panipat thermal plant on long-term basis on lease, rehabilitate unit 3 & 4, operate and transfer unit 1 to 4 for a period of 10 years on the basis of competitive bidding. The board was discussing proposal for Renovation and Modernization (R&M) of unit 3 & 4.
Chief Engineer/ Planning had put up the memorandum to HPGCL board on March 14 for taking decision regarding carrying out R & M of unit 3 & 4 of Panipat thermal plant through World Bank funding or to do need-based renewal and replacement with its own funds or taking loans from financial institutions.
The cost of R & M project varies between Rs. 526 to 554 crore for two alternatives. The cost of second proposal of need-based replacement in two phases was Rs.144.68 crore. After 10 years the units can be phased out with new super critical technology units.
The recommendations of memorandum, which were discussed by the 6-member board, comprising of 4 IAS officers and two technical members found no merit in the two proposal submitted by Chief Engineer for R& M works of thermal units. The board opted for leasing out the units to a private party though there was no such written proposal before the board.
According to the memorandum, HPGCL in its meeting held on August 28 2008 decided to go for R & M of unit 3 & 4 with World Bank assistance and the project was included as a pilot project of Government of India. The loan agreement with World Bank was signed on December 17 2009. The total cost of project was Rs.448.36 crore. The World Bank loan was Rs.272.80 crore and Haryana government's share was Rs.118.36 crore. The grant component was Rs.57.20 crore. In addition to above, technical assistance of Rs.7.92 crore was also to be given.
To carry out the R & M of thermal unit 3 & 4 the Design consultancy work was given to Energo Engineering Projects, New Delhi at a cost of Rs.1.05,16,186. Draft energy report, draft technical report and detailed project report were received in June 2011. The same were accepted by HPGCL on January 4 2012. The consultants have given 4 alternatives for carrying out renovation works including upgrading the unit up 120 MW capacity.
According to sources after receipt of report, officers were deputed to Bhatinda, Tanda, Kothaguedum thermal stations to get feedback on R& M works carried out by them on similar units.
As per report submitted by the officers, the performance of two units at Bhatinda was not consistent after renovation. At Tanda thermal, NTPC did not go for comprehensive R & M but adopted short term, medium and long term need-based replacements. At Kothaguedum, units are running at full load but the poor coal quality is affecting generation. The renovation experience of first two units at Panipat thermal was not found satisfactory by HPGCL.

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