MahaGenco ready for its first public-private partnership

To meet the rising demand for electricity in Mumbai, the state government is looking at developing a coal-based thermal power plant at Dehrand in Raigad district in a joint venture with the Tata Power Company (TPC) for supplying power to the metropolis.

Maharashtra energy minister Chandrashekhar Bavankule told dna that the state would develop the project in a joint venture with Tata Power and added that a MOU would be signed soon. The project is aimed at meeting the expected shortfall of electricity in and around Mumbai.

In case of a failure or disturbances in the western grid, the islanding system in Mumbai can isolate itself from it and draw electricity from dedicated generating systems to ensure uninterrupted supply, except in areas like Mulund and Bhandup, which are serviced by the Maharashtra State Electricity Distribution Company Limited (MahaVitaran). Mumbai is supplied power by the TPC, Reliance Infrastructure (Rinfra), Brihanmumbai Electricity Supply and Transport Undertaking (BEST) and MahaVitaran.

"This project will have a 51% stake for the Maharashtra State Power Generation Company Limited (MahaGenco) and 49% for Tata Power. The work will start in around three months after the MOU is signed," said Bavankule, adding that the Mumbai islanding area was likely to face a shortfall of around 1,000 MW in 2020. "The project will be run on domestic coal," he added, stating that the Gare Palma coal mines located in Chhattisgarh, which have been allocated to the Maharashtra government, were being looked at for fuel linkages.

Bipin Srimali, principal secretary, energy, Maharashtra, said that the idea was at a primary stage and the legal and financial model and the structure of the company was being worked out. This will be the first joint venture power generation project that the MahaGenco will enter into with a private entity. Though the capacity is yet to be finalised, the project may see 660 MW or 800 MW being added with an around three-and-half years completion period and work may start by March or April next year, he revealed."We supply around 600 to 700 MW from outside to the islanding (area) and sometimes the number is more. It depends on the demand on a particular day," he added, stating that the electricity from Dehrand would be supplied to the island city with the remaining power being supplied by the MahaGenco to the rest of the state.

A senior MahaGenco official said their board had given an in-principle nod for a joint venture.The Tata Power had initially planned to set up a 1,600 MW imported coal based supercritical thermal power plant at Dehrand and Shahapur villages in Raigad's Alibag Taluka. A questionnaire sent to the company went unanswered.