Bander power station

From Global Energy Monitor

Bander power station, also known as Thermal Powertech power station and Pynampuram (Painampuram) power station, is a 1,320-megawatt (MW) coal-fired power station in Andhra Pradesh, India. Plans for an additional 660 MW unit appear to be shelved.

Bander power station and the Muthukur Mandal power station (Painampuram) are together known as the Sembcorp Gayatri Power Complex.[1][2]

Location

The undated satellite photo below shows the plant in Painampuram village.

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Background

Bander power station is a proposed coal-fired power station in Andhra Pradesh by Thermal Powertech Corporation. Phase I (2 units of 660 MW) and II (one unit of 660 MW) received an environmental permit in 2009.[3]

Unit 1 of Thermal Powertech Corporation India went into commercial operation in April 2015 and unit 2 in September 2015.[4][5]

As of October 2015, unit 3 (660 MW) was still planned for construction.[6] However, as of January 2020, the unit has still not begun construction and appears to be abandoned.

Financing for Phase I

In September 2010, a financing agreement for Phase I was closed. US$941 million in loans was provided by the Rural Electrification Corporation, Power Finance Corporation, Punjab National Bank, Life Insurance Corporation of India, United Bank of India, Bank of Baroda, Syndicate Bank, Oriental Bank of Commerce, and PTC India. US$313.90 million in equity was provided by SembCorp Industries and Gayatri Group. Capital Fortunes acted as financial adviser to the sponsors.[7]

Coal Source

Imported coal will be transported by ship to Krishnapatnam Port. Indigenous coal will be brought by rail from Ib Valley/Talcher to Paradip/ Dhamra Port and then transported by sea to Krishnapatnam Port.[8]

Ownership

In May 2016, Sembcorp spent US$96.5 million to increase its ownership stake in the Sembcorp Gayatri Power Complex to 86.9%.[9]

In September 2022, Sembcorp Industries agreed to sell the power station to Oman-based Tanweer Infrastructure for INR117bn ($1.46bn). In this connection, Sembcorp Industries’ fully-owned subsidiary Sembcorp Utilities signed a share purchase agreement with Tanweer Infrastructure to sell Sembcorp Energy India (SEIL), which was the holding company for the two power plants. Tanweer Infrastructure would become the lone shareholder of SEIL on completion of the deal. The former was indirectly owned by a consortium led by Oman Investment Corporation in partnership with the Omani Ministry of Defence Pension Fund and Dar Investment SPC.[10]

By November 2022, shareholders in Sembcorp Industries had approved the sale. The deal allowed the Singapore-based company to avoid higher interest payments on its green debt even as it retains liabilities in the polluting assets. It was described as one of the first examples of a green bond issuer effectively changing the premise on which it has been issued, by shifting a high-carbon asset off balance sheet while continuing to finance it.[11]

Project Details

Owner: Sembcorp Energy India
Parent company: Tanweer Infrastructure
Location: Painampuram village, Mutukur mandal, Nellore district, Andhra Pradesh
Coordinates: 14.351195, 80.143086 (exact)
Status: Operating (Units 1-2); Cancelled (Unit 3)
Capacity: 1,980 MW (Units 1-3: 660 MW)
Type: Supercritical
In service: 2015 (Units 1-2)
Coal Type:
Coal Source: Krishnapatnam Port
Estimated annual CO2: 798,350 tons[12]
Source of financing: phase I: US$941 million in debt from Rural Electrification Corporation, Power Finance Corporation, Punjab National Bank, Life Insurance Corporation of India, United Bank of India, Bank of Baroda, Syndicate Bank, Oriental Bank of Commerce, and PTC India; US$313.90 million in equity from SembCorp Industries and Gayatri Group[7]
Permits and applications: Environmental clearance for Phases I and II: 3 x 660 MW, India MoEF, Nov 4, 2009

Articles and resources

References

  1. "Sembcorp launches 2,640MW power project in Nellore," Hindu Business Line, Feb 27, 2016
  2. "Sembcorp Utilities in India," Sembcorp, accessed March 2016
  3. Environmental clearance, India MoEF, Nov 4, 2009.
  4. "Sembcorp's first coal-fired plant in India starts operations," The Edge Markets, Sep 14, 2015
  5. ""Monthly Report," CEA, April 2015
  6. "Note on amendment to EC," Thermal Powertech, October 2015
  7. 7.0 7.1 "Preview of Krishnapatnam Thermal Power Plant Phase I (1320MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-13.
  8. "Project Details," Thermal Power Corporation website, accessed January 2012
  9. "Sembcorp raises stake in India’s 1,320MW Thermal Powertech," IJGlobal, May 4, 2016
  10. "Sembcorp to sell 2.6GW coal-fired power plants in India for $1.5bn," NS Energy Business, September 6, 2022
  11. "Sembcorp coal deal raises concerns about distortions in green bonds," Financial Times, November 8, 2022
  12. For estimation method, see Estimating carbon dioxide emissions for proposed coal plants in India

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