NLC India awards EPC contract to BHEL for 2.4GW thermal power project in Odisha

NLC India Ltd, a leading public sector enterprise, has made a significant move in the energy sector by awarding an Engineering, Procurement, and Construction (EPC) contract to Bharat Heavy Electricals Limited (BHEL) for setting up a 2,400 MW (3 x 800 MW – Stage I) thermal power project. This project, based on Ultra Super Critical Technology, is set to be established at Jharsuguda District in Odisha, India. The contract was finalized following a competitive tender process under the International Competitive Bidding (ICB) route.

Project Details and Specifications

The scope of the EPC contract encompasses comprehensive engineering, manufacturing, supply, erection, and commissioning of various essential equipment. This includes boilers, turbines, generators, and balance of plants, along with Flue-Gas Desulfurization (FGD) and Selective Catalytic Reduction (SCR) systems for the 3 x 800 MW – 2400 MW Stage -I of the project. In line with the Ministry of Environment, Forest and Climate Change (MoEF) guidelines, the project will be equipped with the latest pollution control equipment, ensuring adherence to environmental standards.

NLC India Ltd Sets Stage for 2,400 MW Thermal Power Project in Odisha with BHEL

Coal Linkage and Power Evacuation

A significant aspect of the project is its coal linkage, which is secured from the 20 MTPA Talabira II & III Open Cast Project (OCP) mines of NLCIL, already operational since 2020 in Jharsuguda and Sambalpur Districts of Odisha. The water requirement for the thermal project will be sourced from the Hirakud Reservoir. The generated power is set to be evacuated through the Indian State Transmission System (ISTS) and State Transmission Utility (STU) Network.

Power Purchase Agreements and Green Initiatives

The power produced by the 2400 MW project has already been tied up with several states including Tamil Nadu, Odisha, Kerala, and Puducherry, with Power Purchase Agreements (PPAs) already executed. Emphasizing on green initiatives, the boilers are designed to support co-firing of biomass, in alignment with the guidelines of the Ministry of Power (MoP), along with dedicated biomass handling systems.

Project Timeline and Economic Benefits

The first unit of the project is scheduled for commissioning in the financial year 2028-29. Being a Pit Head Thermal Project, it is anticipated to have competitive variable costs, enabling NLC India to generate and provide low-cost power to its beneficiaries, thereby contributing to the region’s economic development and energy security.