Cuttack KVK Nilachal power station
Cuttack KVK Nilachal power station, also known as KVK Nilanchal TPP, was a proposed 1,050-megawatt (MW) coal plant in Odisha, India.
One unit was under development, but on hold and presumed cancelled. A liquidation process was initiated.
The map below shows the construction site near Kandarei village, west of Cuttack.
Construction on the project was halted in 2012, when the Cuttack High Court imposed an interim stay on grounds of violation of wildlife protection laws. In March 2014, the Odisha government urged the Union Ministry of Environment & Forests (MoEF) to grant wildlife clearance for the project.
As shown on Google Earth, structural work was proceeding on the first unit as of April 9, 2012, but was frozen at that point. Other units had not entered construction.
In May 2015, the Odisha government said it was considering extending the MoU of KVK Nilachal, as litigation had impeded the pace of the project's progress.
According to the India government in March 2016, unit 1 resumed construction and was planned for operation in 2018-2019. Units 2-3 were "uncertain." According to the July 2016 Broad Status report, "No work is under progress presently."
According to the March 2017 Broad Status report, "No work is under progress presently." The report showed that expenditure on the project peaked in FY 2011-12 at Rs75,226 lakhs, dropping to Rs 15,740 lakhs in 2012-13, 5,847 lakhs in 2013-14, and 6,000 lakhs in 2014-15.
In 2021, government documents noted the following about the three-unit project: "Liquidation Order date 17.12.2020; The Liquidator has initiated for E-Auction Sale as a going concern."
Liquidation process documents summarized the following: "PFC, HUDCO, IIFCL and UCO Bank provided a project loan of Rs.1080 crores in consortium with PFC as the lead FI. KVK defaulted in repayment and the account was classified as “NPA” from 15.04.2015, 15.01.2015, 31.12.2015 and 30.06.2017 in the books of PFC, HUDCO, IIFCL and UCO Bank respectively. The current Corporate Insolvency Resolution Process against KVK Nilachal Power Private Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiated on 23rd September 2019 vide order of Hon’ble NCLT, Hyderabad Bench."
Additional documents were available on the Corporate Insolvency Resolution Process website.
For examples of other stalled coal projects in India, see Troubled Indian Coal Plant Construction Sites.
Financing for Phase I
By February 2009, the company had achieved financial closure for the first 350-MW unit (phase I) of the project. A group of four lenders, including Power Finance Corporation and Punjab National Bank, agreed to lend Rs 10.8 billion (approx. US$225 million at 2009 exchange rates). KVK Energy agreed to invest Rs Rs 5.1 billion (approx. US$110 million) in equity in the project.
In July 2013, farmers of the Cuttack district in India sent a letter to Chief Minister Naveen Pattnaik over the Cuttack Nilachal power plant. The farmers demanded that they be returned the farmland that KVK Energy, the company in charge of the Cuttack Nilachal plant, had bought in 2016. Citing delays in the start of the construction, the villagers wanted their land back.
Location: Kandarei village, Althagarh taluk, Cuttack district, Odisha
Coordinates: 20.5870974, 85.742653 (exact)
Status: Unit 1: Cancelled (Construction on hold); Units 2 and 3: Cancelled
Capacity: 1050 MW
- Phase I, Unit 1: 350 MW
- Phase II, Unit 1: 350 MW
- Phase II, Unit 2: 350 MW
Projected in service:
Estimated annual CO2:
Source of financing: Phase I: Rs 10.8 billion in debt from a group of four lenders, including Power Finance Corporation and Punjab National Bank; Rs 5.1 billion in equity from KVK Energy
Permits and applications: Environmental Clearance, India MoEF, Feb 18, 2009
Resources and articles
Related GEM.wiki articles
- "Current Projects," KVK website, accessed February 2012
- "Odisha nudges MoEF for wildlife nod to KVK Nilachal's project," Business Standard, March 19, 2014
- "Odisha not to extend MoUs of 11 IPPs," Business Standard, May 11, 2015
- "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, March 2016
- "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, July 2016
- “Broad Status Report,” Thermal Project Monitoring Division, Central Electricity Authority, November 2021
- "Revised Invitation For Expression Of Interest For Submission Of Resolution Plan In KVK Nilachal Power Private Limited," KVK Nilachal Power Private Limited (Under Corporate Insolvency Resolution Process), January 20, 2020
- "Maytas out of 1,050-Mw power project in Orissa". www.rediff.com. Retrieved 2020-09-29.
- “Farmers demand return of land bought for KVK power project”, Business Standard, July 30, 2013.