Cuttack KVK Nilachal power station

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Cuttack KVK Nilachal power station is a cancelled power station in Kandarei, Athagarh, Cuttack, Odisha, India. It is also known as Kandarei.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Cuttack KVK Nilachal power station	Kandarei, Athagarh, Cuttack, Odisha, India	20.5871, 85.7427 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• Unit Phase I: 20.5870974, 85.742653
• Phase II Unit 1: 20.5870974, 85.742653
• Phase II Unit 2: 20.5870974, 85.742653

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit Phase I	cancelled	-	350 MW	subcritical	-	-
Phase II Unit 1	cancelled	-	350 MW	subcritical	-	-
Phase II Unit 2	cancelled	-	350 MW	subcritical	-	-

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit Phase I	KVK Energy & Infrastructure	KVK Energy & Infrastructure
Phase II Unit 1	KVK Energy & Infrastructure	KVK Energy & Infrastructure
Phase II Unit 2	KVK Energy & Infrastructure	KVK Energy & Infrastructure

Project-level coal details

• Permits: Ec 18 feb 2009 at http://bit.ly/1fe1hbs

Financing

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

Background

The project was being developed in two phases by KVK Nilachal Power Pvt. Ltd., a subsidiary of KVK. Phase I of the project was 350 MW, and Phase II was 700 MW.

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.

Liquidation

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.

According to the June 2023 Broad Status report, the project had been "sold to successful bidder M/s Padmaprabhu Commodity Trading Pvt Ltd in the E-auction held on 26th August 2022."

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.

Opposition

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.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.