RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

.- 2 X 660 MW BANSWARA COAL BASED SUPERCRITICALGREENFIELD THERMAL POWER PROJECT PROPOSED A T

VILLAGE-PHEPHAR/ DISTRICT - BANSWARA(UNIT # 1 & 2)

.•

PRE-FEASIBILITY REPORT

(Revised)

PRE-FEASIBILITY REPORT

1. Introduction1.1 This document presents summary project details of 2 x 660 MW

coal based supercritical technology based thermal power projectproposed to be established at village -Phephar in District -Banswaraunder Stage- I (Unit - 1 & 2).

1.2 The summary project details consists of extent of land requirement,requirement of coal (primary fuel) and water, technology ofsupercritical units vis a vis sub critical units, Clean DevelopmentMechanism (CDM) benefits, CSR benefits, brief technical featuresof the main plant (boilers/turbines and auxiliaries), powerevacuation, environmental aspects, estimated project cost and costof generation per unit and project schedule.

2 Location of the project

The location of proposed Greenfield power project IS at village -Phephar on Banswara -Danpur Road of State Highway No-10 and35 Kms from Banswara District of Rajasthan at (Latitude 230

27'55"N , Longitude 740 38'31"E & 395M above MSL), with barren/hard rocky /black cotton soil. The nearest airport is Dabok inUdaipur city which is approx.225Kms from the site.

3. Land RequirementIt is estimated that land required for the proposed 2 x 660 MWpower station would be of the order of 1142.88 Acres(462.52 Ha)including area required for ash disposal area, in-plant marshallingyard, raw water reservoir and all systems / structures required forthe power plant, but excluding the land required for colony(township), water & Railway corridors.

4. Water RequirementWater requirement for the proposed 2 x 660 MW is estimated to beof the order of 60 cusec per day. This requirement is arrived atafter considering adoption of recirculating type of cooling water (byinstalling cooling towers) and adopting 'zero discharge' concept inthe Project.

At each project site, raw water reservoirs to store 30 days of waterrequirement would be constructed to take care of vagaries in watertransportation from the rivers / dams.

5. Sources of Raw Water and Allocation

The source of water for proposed Project would be Mahi Dam.

Water Resource Department, Government of Rajasthan hasallocated 2000 Mcft per day from Mahi Dam which is about 25 kmaway from the site.

6. Coal Requirement

Coal requirement for a 2 x 660 MW supercritical power station isestimated to be of the order of raw coal 6.50 MTPA and washedcoal order of 5.04 MTPA. (Assumptions: Plant Gross heat rate:2450 kCaljkWH; GCV of Coal: 4,500 kCaljkg; Annual Plant LoadFactor: 0.80).

7. Source of Coal and Coal Transportation to Site

Application for long term coal linkage submitted to Ministry ofcoal, Gol on 19.01.2010. Ministry of Coal has allocated a smallcoal block (Kante Extension) on 05.08.2013 in Chhattisgarh stateentailing coal haulage distance of more than 1500 km to RVUNbut formal allocation letter from MoC is still awaited.

Presently, no rail link is available between Ratlam to Banswara.New Broad Gauge railway line from Ratlam to Dugarpur viaBanswara has been announced by the Hon'ble Railway Minister,GOI in Rail Budget 2011-12. This Rail line is proposed to transportcoal required for the project .The state Govt. has given its consentto Ministry of Railway for sharing 50% of the project cost Rs 2083Crs along with the cost of land acquisition for construction ofbroad gauge rail link from Ratlam to Dungarpur via Banswara.The State Government's contribution is estimated to be..approximately Rs.1200 Crores. The share amount of Rajasthanshall be borne by three supercritical power project each of2x660MW capacity in Banswara region: i.e State Sector RVUNproject at Phephar, Tariff based competitive bidding routeproject(Case2 - IPP) of RVPN at Danpur and one private project.

Satellite field survey for Railway Link Ratlam-Dungarpur viaBanswara has been completed . Physical possession of land hasbeen handed over to NWR pertains to Banswara and Dugarpursection of Rajasthan by GoR .Earth work has also been startedand land for 37 km Rail route around 367.10 Bigha land hasbeen acquired and handed over to Railway for carrying out EarthWork of Railway line in section Banswara-Ratlam. The Rail linkproject is expected to be completed within 4 years.

3

8. In-plant coal handling SystemThe in-plant coal handling system is expected to be of wagontipplers type as in the case of the existing units of other Powerstation of RVUN. The merry go round (MGR) type of system withbottom open wagons may not be feasible for the long haulagedistances involved.The in-plant coal storage yard would consist of at least 30 dayscoal storage capacity.

9. Supercritical TechnologyThe supercritical technology is fairly new to India. Mj s NTPC haveinstalled power plant units with supercritical technology.The basic difference in supercritical boilers and sub critical boilersis that there would be no steam drum in supercritical technologyunlike sub critical boilers. The feed water is directly made assteam without having a boiler drum. The pressure rating in asupercritical boiler is relatively higher (about 270 bar) ascompared to sub critical boilers (about 130 bar). The materials ofconstruction for pressure parts in supercritical boilers would alsobe superior compared to sub critical boilers.Height of the boiler with supercritical technology is also higher atleast by 10 m (since there is no boiler drum and the entire steamhas to be produced within the pressure parts) compared to a subcritical boiler. .The main advantage of adopting supercritical technology is gain inthe heat rate, thereby requiring lesser coal for firing. Typically, theheat rates for power stations (considered for tariff computations)with supercritical boilers is about 2,450 kCaljkWH compared toabout 2,500 kCaljkWH for sub critical boilers (about 2%-3% gainin heat rate). However, supercritical units entail higher main plantequipment cost of about 10% (Project cost increase would bearound 3%-4%).Therefore, it is a trade off between the operatingcost and capital cost.The supercritical technology power stations are relatively moresensitive to control systems adopted particularly in regard toquality of boiler feed water etc.In India, BHEL has proposed to manufacture and supplysupercritical boilers in collaboration with Mj s Alstom and the TGunits with Mjs Siemens.

10 Clean Development Mechanism (CDM) Benefits of PowerProject.Clean Development Mechanism (CDM) allows emission reductionprojects that assets developing countries in achieving sustainable

"lldyull/, ~ n ~··f /).,~ ~ -~ oil

0: Jaipur ~ ~ 4 r'::: R' Z~ aJastha:1~'~ '."'~ ~,'I1f'Q • .~\ <\

11

11.1

11.2

11.3

development and the generated Certified Emission Reductions canbe used by the industrialized countries or companies. In view ofadoption of supercritical boilers having higher efficiency (2.4%) ascompared to that of sub-critical boilers, coal consumption per unitof power generation would be lower leading to reduction in C02emissions. Further, investment cost of super critical boilers beinghigher, the projects based on such technology are likely to meetthe CDM additionally criterion.

CDM Executive Board has already approved a methodology basedon new coal fired power generating units with Supercritical steamparameters (ACM 0013; Versionl/NM005) and Central ElectricityAuthority (CEA) has also published a baseline database forcatalyzing such development. RVUN would, therefore, endeavor todevelop these projects as CDM Projects and would make efforts foravailing the benefits of commercialization of the Carbon EmissionReduction (CERs) based on these projects.Main plant EquipmentThe steam generators of the 660 MW units would be 100% coalfired and would be rated to generate about 2170 t/hr each, ofsuperheated steam at about 250 kg/ cm2 pressure and 568°Ctemperature. Reheat steam temperature would also be 568°C.

Steam generators would be equipped with facilities for fuel oilfiring for start-up and for flame stabilization at low loads. Steamturbine would be three cylinder tandem-compound machines,..driving a turbo-generator at 3000 rpm to produce 660 MW ratedoutput at 0.85 power factor at the generator terminals. The steamgenerators would be designed as semi-outdoor equipment whilethe turbine generator set with all auxiliaries and feed cycleequipment would be located indoor.

The power plant is expected to use coal with maximum of 40 %ash content and relatively low sulphur content. For the selectedconfiguration of 2 x 660 MW units, a common RCC stack would beinstalled for steam generators to meet the requirements of theenvironmental regulations. The stack height would be 275 m. Thesteam generators would be provided with low NOx burners andhence the emission of oxides of nitrogen from the steam generatorswould be minimal.Further, The steam generators would be provided with electrostaticprecipitators to limit the particulate matter in the flue gas to 50m Nm3.

"iidyut lJt,.~'?- :f)-l.~ ~

Cl( Jaipur ~I: R· Z~ ajaS!hUil ;:.

'<1\ ,~~'& ~. Q 0 .\l''\

5

12.0 Environmental benefits of supercritical power projects

Adoption of supercritical technology and higher operatingparameters will result in higher efficiency leading to lower C02 &SOx emission per unit of electricity generation. Emission of otherpollutants like NOx & SPM would also reduce with adoption oflatest technology of low NOx burners, staged combustion, efficientESPs etcHigher efficiency, besides leading to corresponding saving in coalconsumption would also lead to lower Ash generation. The landrequirement for ash dump areas would also correspondinglyreduce and there would be reduction in auxiliary consumption.

13.0 Corporate Social Responsibility (CSR) Benefits of the PowerProject

13.1 Govt. of Rajasthan accorded administrative approval to corporatesocial Responsibility of RVUNL vide their letter no P.16 (4)Energy /2009 dated 20.05.2011. The CSR policy shall beapplicable to the Project Affected Persons (PAPs) and for the ProjectAffected Areas (PAAs) in respect of the existing Power Projects/Stations of RVUN / its subsidiary companies which are moperation and the Power Projects under execution and to bedeveloped in future by RVUN or its subsidiaries.

13.2 The aims & objectives of this Policy are as under -I. Improving socio-economic status of Project Affected Persons

(PAPs).Il. "Providing opportunities for sustainable improvement in the

fields of income generation, health, education, water &electricity, sanitation, communication and such other fields.

Ill. To adopt a holistic approach to community development ofProject Affected Areas and ensuring that the people of suchareas improve or at least regain their previous standards ofliving.

IV. Carrying out community development activities m atransparent and participative manner.

V. Ensuring participation and consultation with the local publicrepresentatives and setting up of institutional mechanismsfor carrying out CSR activities in Project Affected Areas.

13.3 Corporate Social Responsibility ActivitiesThe list of the activities covered under CSR policy is purelysuggestive in nature and any other activities may also be taken up

~ idYll' lit 0 Q 3?'.~? I')~::-' ~ "-.;er: Jaipur ~ ~ 6 y-eR' Z~ lIjasrh.u ~.~ e,~/) ~ .. flq • 'V,f\

as per the need(s) of the Project Affected Persons/ Project AffectedAreas to be assessed at the Project level. The list of CSR activitieswill be as under:

i) Education: with emphasis on Primary education, Girleducation and Adult education;

ii) Drinking Water Supply: with emphasis on safe drinkingwater to villagers and other water related facilities;

iii) Electrification of Villages / Electrification of Public Places;iv) Health care, such as Mobile clinics and Community health

related services;v) Environment;vi) Social Empowerment;vii) Infrastructure development, such as construction of anicuts,

roads, community halls, school buildings, health centers,sanitation facilities, etc.;

viii) Sport(s) and cultural activities;ix) Generation of employment / Capacity building such as

vocational training to local people;x) Grant/donation/financial assistance/ sponsorship to the

reputed NGOs/ societies/Local agencies involved in socialdevelopment works;

xi) Works related for preservation of 'heritage sites' in the ProjectAffected Area;

xii) Empowerment of women for education, health & self-employment;

xiii) Providing relief to victims of Natural Calamities like EarthQuake, Cyclone, Drought & Flood situation etc;

xiv) Distribution of efficient Chula(s) to the villagers;xv) .•Adoption of village(s) for overall development;xvi) Any other development works suggested by local Gram

Panchyats / Panchayat Samities / District Administration /CSRI Committee;

xvii) All works for creating community assets;13.0 State Govt. Approval

The state Govt. vide letter No. F.2(2) Energy /09 dated 24.06.10 hadaccorded "Administrative & Financial" approval for setting up ofcoal based Greenfield Thermal Power project having 2x660MWcapacity with the total project cost as Rs 7920 Crores.

14.0 Project Cost and Cost of Unit generation

As indicated above, the Project cost of a power station usingsupercritical technology would be relatively higher from the point ofview of adoption of superior technology, superior materials of

~~

7

15.0

construction. Added to this, in India, the technology being adoptedfor the first time, there would be additional costs towards adoptingand development of technology.The following assumptions have been taken while working out the

r tenera ion cosS. No. Particulars1 Capacity of the Project 2x660 MW2 Estimated project cost Rs. 7920 Crs. @ Rs. 6.00 crs.

per MW3 Debt equity ratio 80:204 Term Loan Interest 1l.00 %5 PLF&Aux. cnsumption 80% & 7.5%6 Depreciation 5.28%7 Delivered cost of coal Rs. 3000 per MT8 GCV of F Grade Coal 4500 kcl/kg duly washed

The cost of generation of electricity and the saleable energy per unitduring first year of operation works as-

S. No. Particulars1 Fixed cost Rs. l.56 per unit2 Variable cost Rs l. 98 per unit3 Total Cost Rs. 3.55 per unit4 Levelised Cost Rs. 3.42 per unit

Sheet showing detailed calculations of cost of generation IS

enclosed.

Project Schedule

Based. on expected deliveries of main plant and equipment, projectimplementation period would be 42 months from zero date tocommercial operation date for the first unit and 45 months for thesecond unit.

8

'.

RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

2x660 MW Banswara Coal based Supercritical TPP at Village Phephar,Unit -1 &2

Table IInput Data

Capacity 1320 MW ~Aux. Cons. 7.5% Return on equity 0.0%PLF 80.00% Incentive 0.0%Gross Generation 9250.56 MUfyr. Income Tax rate 18.0%Net Generation 8556.77 MUfyr. Tax holiday 100% 5 yrs 100% for first 5 yrs &

70% for next five yrsProject Cost (Incl. IDC) 7920 Rs. Cr. Depreciation rate 5.28%Debt 80% 6336 Rs. Cr. Discount factor 11%Equity 20% 1584 Rs. Cr.Per MW Cost 6 O&M Charge 2.5%Term loan Escl. In O&M charge 1.00%Repayment period 15 YearsInterest Rate 11.00% annual Heat Rate 2450 kCaljkWh

GCV of Coal 4500 kCal/KgWorking Capital Coal Cost (Incl.Trans.) 3 Rs./KgInterest Rate 10.25% annual

Secondary Fuel Requirement 2 ml/kWhCoal Requirements 2 month Specific density 0.9 gm/ccSecondary oil requirement 2 months Cost (Incl. Transportation) 33000 Rs./kLO&M charges 1 month Escl. In Fuel cost 2.00% annualReceivables 2 months Period upto COD 3.9 yrsspares 1% ~Escalation on spares 4% <2-~

~I

'.

RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED2x660MM Banswara Coal based Supercritical TPP at village- Phephar,UnH::-l&2

(Washed coal with GCV 4500 Kcal/Kg )Table 11

Per Unit Tariff

Depreciati Interest Provision Total Secondary TotalYear Interest ROE Incentive O&M Coal Cost Variable Total Cost

on on WC for IT Fixed Cost OilCost

Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kYVh Rs./kWh Rs./kWh1 0.7874 0.4887 0.0000 0.0000 0.2314 0.0592 0.0000 1.5667 1.9075 0.0771 1.9846 3.55132 0.7331 0.4887 0.0000 0.0000 0.2337 0.0601 0.0000 1.5156 1.9457 0.0786 2.0243 3.53993 0.6788 0.4887 0.0000 0.0000 0.2360 0.0610 0.0000 1.4645 1.9846 0.0802 2.0648 3.52934 0.6245 0.4887 0.0000 0.0000 0.2384 0.0620 0.0000 1.4135 2.0243 0.0818 2.1061 3.51965 0.5702 0.4887 0.0000 0.0000 0.2408 0.0630 0.0000 1.3626 2.0648 0.0834 2.1482 3.51086 0.5159 0.4887 0.0000 0.0000 0.2432 0.0640 0.0000 1.3118 2.1061 0.0851 2.1912 3.50307 0.4616 0.4887 0.0000 0.0000 0.2456 0.0651 0.0000 1.2610 2.1482 0.0868 2.2350 3.49608 0.4073 0.4887 0.0000 0.0000 0.2481 0.0662 0.0000 1.2102 2.1912 0.0885 2.2797 3.49009 0.3530 0.4887 0.0000 0.0000 0.2506 0.0673 0.0000 1.1596 2.2350 0.0903 2.3253 3.484910 0.2987 0.4887 0.0000 0.0000 0.2531 0.0685 0.0000 1.1089 2.2797 0.0921 2.3718 3.480711 0.2444 0.2295 0.0000 0.0000 0.2556 0.0685 0.0000 0.7980 2.3253 0.0940 2.4192 3.217212 0.1901 0.2295 0.0000 0.0000 0.2582 0.0700 0.0000 0.7477 2.3718 0.0958 2.4676 3.215413 0.1358 0.2295 0.0000 0.0000 0.2607 0.0715 0.0000 0.6976 2.4192 0.0978 2.5170 3.214614 0.0815 0.2295 0.0000 0.0000 0.2633 0.0731 0.0000 0.6475 2.4676 0.0997 2.5673 3.214815 0.0272 0.2295 0.0000 0.0000 0.2660 0.0748 0.0000 0.5974 2.5170 0.1017 2.6187 3.216116 0.0000 0.0000 0.0000 0.0000 0.2686 0.0752 0.0000 0.3438 2.5673 0.1037 2.6710 3.014917 0.0000 0.0000 0.0000 0.0000 0.2713 0.0769 0.0000 0.3482 2.6186 0.1058 2.7245 3.072718 0.0000 0.0000 0.0000 0.0000 0.2740 0.0787 0.0000 0.3527 2.6710 0.1079 2.7789 3.131719 0.0000 0.0000 0.0000 0.0000 0.2768 0.0805 0.0000 0.3573 2.7244 0.1101 2.8345 3.191820 0.0000 0.0000 0.0000 0.0000 0.2796 0.0824 0.0000 0.3619 2.7789 0.1123 2.8912 3.253121 0.0000 0.0000 0.0000 0.0000 0.2823 0.0843 0.0000 0.3666 2.8345 0.1145 2.9490 3.315722 0.0000 0.0000 0.0000 0.0000 0.2852 0.0863 0.0000 0.3715 2.8912 0.1168 3.0080 3.379523 0.0000 0.0000 0.0000 0.0000 0.2880 0.0883 0.0000 0.3763 2.9490 0.1192 3.0682 3.444524 0.0000 0.0000 0.0000 0.0000 0.2909 0.0904 0.0000 0.3813 3.0080 0.1215 3.1295 3.510925 0.0000 0.0000 0.0000 0.0000 0.2938 0.0926 0.0000 0.38~ 3.0682 0.1240 3.1921 3.5785

41

I 2.3022J:t4-29i I

@.-~