Rajpura Thermal Power Project

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Rajpura Thermal Power Project is an operating power station of at least 1400-megawatts (MW) in Nalash, Rajpura, Patiala, Punjab state, India with multiple units, some of which are not currently operating. It is also known as site changed from Nabha.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Rajpura Thermal Power Project Nalash, Rajpura, Patiala, Punjab state, India 30.558963, 76.577593 (exact)

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

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2, Unit 3: 30.558963, 76.577593

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 operating coal - subbituminous 700 supercritical 2014
Unit 2 operating coal - subbituminous 700 supercritical 2014
Unit 3 cancelled coal - unknown 700 supercritical

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 Nabha Power Ltd [100.0%]
Unit 2 Nabha Power Ltd [100.0%]
Unit 3 Nabha Power Ltd [100.0%]

Project-level coal details

  • Permit(s): October 3, 2008 – Environmental Clearance Extension: 2014-02-05, Terms of Reference: 2017-10-16; Terms of Reference: 2011-01-13

Financing

Source of financing: Units 1 and 2: US$1.61 billion in debt from Axis Bank, ICICI Bank, Punjab National Bank, Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Export-Import Bank of India, Federal Bank, Housing Development Finance Corp, India Bank, Indian Overseas Bank, Indusind Bank, Kotak Mahindra Bank, Punjab & Sind Bank, South Indian Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Syndicate Bank;[1] US$81 million in debt from JBIC; US$55 million in debt from MUFG Bank[2]

Background

The sponsor of the plant is the Punjab State Power Corporation, which has established Nabha Power as a special purpose vehicle for the project.[3] Nabha Power was transferred to L&T Power Development as its wholly owned subsidiary on January, 18 2010.[4]

At first, Nabha proposed a 1320 MW (2x660 MW) plant, but received an environmental clearance (EC) from the MoEF dated November 15, 2010 to construct instead 1400 MW (2x700 MW);[5] the EC received an extension in 2014.[6]

In 2011, the plant was under construction at the village of Nalash near Rajpura in Patiala district, Punjab.[7]

Unit 1 was commissioned on December 8, 2013, and Unit 2 had a planned commissioning date of March 2014.[8]

Financing for Units 1 and 2

In March 2011, a financing agreement for units 1 and 2 was closed. US$1.61 billion in loans was provided by Axis Bank, ICICI Bank, Punjab National Bank, Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Export-Import Bank of India, Federal Bank, Housing Development Finance Corp, India Bank, Indian Overseas Bank, Indusind Bank, Kotak Mahindra Bank, Punjab & Sind Bank, South Indian Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Syndicate Bank.[1]

In December 2011, JBIC provided the project with a loan of JPY6.3 billion (approx. US$81 million). The loan was co-financed with The Bank of Tokyo-Mitsubishi UFJ, Ltd (MUFG Bank), which provided an additional JPY4.2 billion (approx. US$55 million) in debt financing.[2] The MUFG Bank loan was insured by Nippon Export and Investment Insurance.[9]

Expansion

Nabha Power has also signed a MOU (memorandum of understanding) with the Punjab government to expand the plant with an additional 700 MW to a total of 2100 MW.[10][11][12]

L&T received a terms of reference toward the expansion in 2011.[13]

The company tried to get an extension on the terms of reference (ToR) in 2014 and was told to submit an application for a new ToR, which the company applied for in April 2017.[14]

The ToR was granted on October 16, 2017.[15]

As of January 2022, there had been no further developments, and the project appeared to be deferred or abandoned.

Ownership & proposed sale

In February 2014, Larsen and Toubro Ltd (L&T) said it was likely to sell the 1,400 megawatt (MW) thermal power plant once it became fully operational as part of a plan to divest assets not central to its main businesses. One analyst estimated that the sale may fetch L&T as much as 27% less than the amount invested on the project.[8] In January 2016, Adani Group said it may buy the plant, as the plant has a 25-year power purchase agreement with the Punjab State Power Corporation and a 20-year supply of coal from south-eastern coalfields.[16]

In September 2021, the Punjab Government was forming a committee to evaluate the offer made by Larsen & Toubro (L&T) to sell the plant.[17]

Citizen opposition

In August 2008, it was reported that hundreds of farmers protested "acquisition of 1078.16 acres of land by the Punjab government for setting up a super thermal power plant near Nalash village." The protesters demanded higher compensation per acre for their land.[18]

In January 2011, unemployed villagers living near the Rajpura plant, many of whom were former farmers, conducted a dharna (peaceful protest or demonstration) outside the plant. Rajinder Singh, a local, said the government "forcefully purchased our land at a very low price”. Others claimed the government "promised to employ maximum number of people from surrounding villages", only to hire 100 people from local villages and bring in other workers from out of state. The government bought 1,078 acres of fertile land from area villagers to construct the plant, and farmers remain unemployed more than a year after construction started. Another local said “the government had made tall claims of project making our lives better, whereas we have become redundant without any sound livelihood”. Nabha Power Limited has said it will hire more people from surrounding villages.[19]

Environmental impact

A November 2023 report by the Centre for Science and Environment (CSE) argued that the ongoing air pollution crisis in the New Delhi National Capital Region (NCR) had been made worse by the failure of nine out of 11 coal plants in the region to comply with air pollution standards. The Rajpura Thermal Power Project was one of the power stations that reportedly exceeded standards, with sulphur dioxide emissions that were five times the limit throughout the 17-month reporting period from April 2022 to August 2023. After repeatedly postponing emissions compliance deadlines, the Ministry of Environment, Forest and Climate Change set the power station's compliance deadline for 2026.[20][21]

Project Clearances

Articles and Resources

References

  1. 1.0 1.1 "Nabha Power closes Rajpura debt | News | IJGlobal". ijglobal.com. Retrieved 2020-10-23.
  2. 2.0 2.1 インド法人ICICI Bank Limited向け輸出バンクローンの供与, Japan Bank for International Cooperation, Dec. 28, 2011, Archived July 31, 2016
  3. Punjab State Power Corporation, "Project Information", Punjab State Power Corporation website, accessed January 2012.
  4. "Nabha Power Company Profile" Nabha Power, accessed March 2012.
  5. "MoEF Clearance for 1400 MW Rajpura Plant" Nabha Power, accessed March 2012.
  6. Environmental Clearance Extension, India MoEF, Feb 5, 2014.
  7. Punjab State Power Corporation, "Thermal power plant at Rajpura" Punjab State Power Corporation website, accessed January 25, 2011.
  8. 8.0 8.1 "L&T to sell thermal power plant in Rajpura," LiveMint, Feb 27, 2014.
  9. Punjab Supercritical Coal-Fired Power Generation Project for India (Underwriting of Trade Loan Insurance), Nippon Export and Investment Insurance, Dec. 28, 2011, Archived Aug. 4, 2016
  10. "Nabha Power Projects" L&T Power Development, accessed March 2012.
  11. FE Bureaus, "L&T roped in to raise Rajpura plant capacity" The Financial Express, August 2, 2010.
  12. "NTPC’s Gidderbaha power plant to start generation by March 2015" The Indian Express, June 10, 2012.
  13. Terms of Reference, India MoEF, January 13, 2011.
  14. "Application for new ToR," India MoEF, 05 Apr 2017
  15. Terms of Reference, India MoEF, Oct 16, 2017
  16. Dev Chatterjee & Sanjay Jog, "Adani may buy L&T's Punjab power plant," Business Standard, January 22, 2016
  17. "Panel to consider firm’s offer to sell Rajpura thermal power plant for Rs 9,690 cr," Tribune India, September 13, 2021
  18. "Punjab farmers protest land acquisition for thermal plant" Z News, August 16, 2008.
  19. Gurdeep Singh Mann, "Their land was acquired to set-up the plant and were promised jobs" Tribune News Service, January 31, 2011.
  20. "Environmental Status of Coal-Based Thermal Power Plants in the National Capital Region," Centre for Science and Environment, November 24, 2023
  21. "11 coal-based power plants around Capital not complying with emission norms: Study," Energy Central, November 27, 2023

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.