Vadlur power station
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Vadlur power station is an operating power station of at least 35-megawatts (MW) in Raichur, Karnataka, India with multiple units, some of which are not currently operating. It is also known as Raichur Steel power station, Raichur Surana.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Vadlur power station | Raichur, Karnataka, India | 16.3015842, 77.3615384 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1, Unit 1 (old), Unit 2: 16.3015842, 77.3615384
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year | Retired year |
|---|---|---|---|---|---|---|
| Unit 1 | cancelled | coal - unknown | 210 | subcritical | – | – |
| Unit 1 (old) | operating | coal - unknown | 35 | subcritical | 2008 | – |
| Unit 2 | cancelled | coal - unknown | 210 | subcritical | – | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner |
|---|---|
| Unit 1 | Surana Power Ltd [100.0%] |
| Unit 1 (old) | Surana Power Ltd [100.0%] |
| Unit 2 | Surana Power Ltd [100.0%] |
Project-level captive use details
- Captive industry use (heat or power): iron & steel
- Captive industry: Power
Project-level coal details
- Permit(s): September 9, 2010 – Environmental Clearance
Financing
Source of financing: DBI Bank Ltd[1]
Background
Surana Industries Limited set up a 35 MW power plant in 2008 to provide power for the existing steel plant on site. SIL has "hived off" the 35 MW plant in order for Surana Power to expand it into a new 420 MW plant. Just over half (51%) of the thermal plant expansion will provide power for SIL's proposed steel plant of 1.0 MTPA (Million Tons Per Annum). According to the Surana Power website, construction is underway on the plant, with commissioning planned for December 2014,[1] although as of May 2017 there are no reports that the plant has been commissioned.
Fly ash will be provided to cement manufacturers.[2]
In July 2015 it was reported that Karnataka Power Corporation (KPCL) was close to buying out privately held power generator Surana Power. The 420 MW coal plant was reported as still under construction and about 20 months from commissioning. The 420 MW plant is adjacent to KPCL’s existing 1,720 MW power station, which bankers said is one reason for the state-owned company’s interest.[3]
In January 2016 lenders took control of the company:[4]
- IDBI Bank has taken possession of secured assets of Chennai based Surana Power Limited (SPL) under the provisions of Sarfaesi Act, 2002 as per Possession Notice published by IDBI Bank dated December 25, 2015... SPL’s 2014 annual report noted that 420 MW project was moving at a slow pace — at the end of FY2014, SPL had invested around Rs 1,657.63 crore against the revised project cost of Rs 3,000 crore. “The slow project progress is mainly attributable to the prevailing economic environment, delays in disbursement of funds, delay in the infusion of equity into the company, substantial portion of funding going towards servicing the interest on the loans, etc,” the SPL management wrote in its annual report.
In February 2016 lenders to Surana Industries voted against a plan to initiate a strategic debt restructuring (SDR) scheme for the company. In the Surana's FY15 annual report, the company reported a loss of R263 crore. The report also stated that although the original project cost for the Vadlur plant was estimated at R2,400 crore in 2010, the project cost had been revised to R3,090 crore.[5]
The project did not appear in the November 2017 Broad Status of coal plants under construction, compiled by the India Ministry of Power.[6]
Liquidation process
Surana Power was admitted into insolvency in January 2019. It did not receive any valid resolution plans and was therefore ordered to be liquidated by the Chennai Bench of National Company Law Tribunal (NCLT). During the liquidation proceedings, state-run BHEL won an ex-parte arbitration award against Surana Power, which gave it lien over all the equipment and goods lying at the latter’s unit, as well as its partially or fully constructed buildings. Following the award, BHEL, which is also one of the secured creditors, refused to give its consent for liquidation as it would have resulted in it getting lesser share according to IBC’s waterfall mechanism. BHEL’s refusal was challenged by the liquidator at the Chennai bench of NCLT. The adjudicating authority had then ruled in favour of BHEL and said the state-run company had full rights to realise the security interests it had won as part of the arbitration. In June 2021, the National Company Law Appellate Tribunal (NCLAT) however, set aside NCLT’s ruling and said that since BHEL did not have the minimum 60 percent value in secured interest, it could not be allowed to stall the IBC proceedings.[7]
As of January 2022, there has been no known developments on the power station, and the project appeared to be deferred or abandoned.
Articles and Resources
References
- ↑ 1.0 1.1 "Surana Power Ltd Expansion Projects," Surana Industries Limited, accessed March 2015.
- ↑ "420MW KIADB industrial are by Surana Power Ltd," Thermal MoEF News, July 13, 2011.
- ↑ "Lenders push sale of Surana to rival," Financial Express, July 15, 2015
- ↑ "Lenders take possession of Surana Power Ltd's assets," Stressed Assets India, January 15, 2016
- ↑ "Lenders drop SDR proposal for Surana Industries," Financial Express, Feb 8, 2016
- ↑ "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, November 2017
- ↑ "NCLAT overrules BHEL objections, gives nod to Surana Power liquidation," Indian Express, June 20, 2020
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.
