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Power Plant Project
The refinery relies on power from the national grid, which suffers from frequent interruptions. There has been an average of 60 interruptions per year over the last couple of years. These interruptions result in lower plant reliability, higher operation and maintenance costs, and potentially unsafe operation. A 9.2 MW captive power plant will be installed to provide power to the refinery. The normal refinery load is 5 MW (peak load is 8 MW), so excess power will be sold back to the grid.
Initially, the power plant was to be implemented under a Build-Own-Operate-Transfer (BOOT) arrangement with Essar Power supplying power to KPRL under a power purchase agreement (PPA). However, PPA issues and regulatory constraints (power generation license, VAT and customs duty waivers, and taxes) resulted in KPRL taking over the funding of the project. Essar Power is now providing Construction Management and Engineering Support to the project under contract to KPRL.
SS Mehta were awarded the road and infrastructure contract and are already in operation. The Civil works is expected to be completed by end of December, 2011.
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