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Tata Power mulls shutting down 500 MW Trombay plant unit

27 Sep 2013 Evaluate

On account of growing unfeasibility towards converting the imported gas/ oil to a coal-fired one, Tata Power is planning to shut down its 500 megawatt (MW) unit at its 1,580 MW Trombay power plant. In light of these plans, ministry of environment and forest is currently reviewing the company’s application seeking clearance for change in fuel, given that the company is finding it unviable to operate a plant on imported oil and generate power at Rs 13-14 per unit. Inorder to use the Unit on a regular basis, the company, back in December 2012, had moved an application for fuel change but to no avail yet.

Tata Power’s Trombay power plant in Mumbai’s eastern suburb has an installed capacity of 1,580MW. A particular unit with a capacity of 500MW in the plant was built in the mid-1980s to be operated either on gas or oil. Since gas is not available, this unit is operated on oil only when there is a sudden spurt in demand. The cost of power generation from diesel varies between Rs.12 and Rs.15 a unit, while coal-fired power costs around Rs 3.50- per unit. The fuel conversion in the plant costs the company around Rs 1,174 crore.

Tata Power is India's largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Tata Power Share Price

375.35 -10.50 (-2.72%)
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