Banka Power Project

The Banka Power Project is a proposed 2640-megawatt (MW) coal-fired power station in Bihar which has been promoted by Jas Infrastructure and Power Limited, a subsidiary of the Abhijeet Group. However, the Memorandum of Understanding the company had entered into with Bihar State Electricity Board has expired and the future of the project uncertain.

Location
The company states that the project, which has acquired part of the land necessary, will be located at Siriya village in Banka district, Bihar state. Wikimapia shows the project at the location shown in the photograph below:

Details
The company proposes that the first stage of the project comprise two 660MW units with the first to be commissioned by June 2014 with the second online by October 2014. The Bihar State Electricity Board states that the company has requested to expand the project from from 2,640 MW to 3,960MW. There is no confirmation on the company website that the project has actually entered construction. The Ministry of Power lists the project among "ADDITIONAL PROJECTS FOR LIKELY COMMISSIONING DURING 12TH PLAN," (i.e. 2012 - 2017).

Background
The Bihar State Electricity Board states that a memorandum of understanding was signed with Jas Infrastructure and Power on the 17th October 2007 and that an "addendum" to the MoU was signed in late December 2008 "for enhancing the ultimate capacity to 2640 MW and extending MoU for thirteen months" to February 2011. Under the MoU "BSEB has right to purchase 25% of power from the proposed project." However, in June 2011 Abhijeet Group informed potential investors that the MOU with the BSEB had expired on March 1, 2011 and "we cannot assure you that such memoranda of understanding will be extended in a timely manner, on terms favourable to us or at all."

Abhijeet Group states that "failure to extend this memorandum of understanding could delay or prevent the development of the Banka Power Project" and that "it remains unclear whether JIPL may be required to honour the Bihar State Electricity Board‘s right of first refusal."

Water and coal supply
On its website the Abhijeet Group states that it has received approval for "85 million cubic meter from Chandan Dam in Bihar", approximately 7 kilometres from the proposed power station. The company states that the "water required for 1320 MW is approx. 39.50 million cubic meter". The company also states that coal for the project will be sourced from Mahuagarhi coal block, which it states has an "estimated total coal reserves of 220 MMT allotted in 50:50 Joint Venture with CESC." The proposed coal mine is approximately "85 km from power project site" and the company has "also applied for coal linkage for additional coal requirement."

The Mahuagarhi Coal Company Private Limited (MCCPL) is the joint venture company formed with CESC. In its prospectus, Abhijeet states MCCPL "has not yet obtained certain approvals, such as a mining lease and has also not yet prepared the geological report. Any failure by Mahuagarhi Coal to obtain such approvals in a timely manner, or at all, may adversely affect the ability of JIPL to obtain fuel for the Banka Power Project, and in turn, adversely affect our results of operations." The company also notes that while the Ministry of Coal have assessed the deposit as containing 220 million tonnes "we have not conducted an independent analysis to confirm such coal reserves."

The company states that it has submitted an environmental impact statement for the project.

Finance
In its June 2011 prospectus the Abhijeet Group states that "we have received sanction letters / underwriting arrangements for an amount of 74,000.00 million from Axis Bank, Punjab National Bank and UCO Bank."

The viability of the project also hinges on its eligibility of attracting financial credits for the use of supercritical units under the Clean Development Mechanism. In its June 2011 prospectus the company notes that as the Kyoto Protocol is scheduled to expire in 2012 and that a "new framework for implementation of CDM may not be brought into effect immediately. The Banka Power Project is scheduled to be fully commissioned in October 2014 and as a result we may be unable to avail of the CDM benefits which may adversely affect our financial condition and results of operations."

On May 26 2011 the Bihar State Investment Promotion Board approved JAS's proposed Banka Power Project.

An earlier report from April stated that BSEB had announced it would invest "INR79,600m ($1,771.12m) in the construction and development" of a 1320MW thermal power project in the Banka district with a commissioning date of 2015. However, the report did not specifically indicate whether this decision related to the Jas Infrastructure and Power Limited proposal or not. Neither the BSEB or Abhijeet Group websites provide recent information on the status of the project.

Project Details
Sponsor: Abhijeet Group Location: Siriya (Saruwa?) village, about 15 km south of the town of Banka in Banka district, Bihar, India Coordinates: 24.7140494, 86.9583293 (exact) Status: Stage I: Advanced development, however the MOU expired, project status uncertain; Stage II: Announced Nameplate capacity: Stage 1: 1320 MW; Stage II: 1320 Type: Supercritical Technology: Supercritical Projected in service: 2014 Coal Type: 4.76 million tonnes per annum with a calorific value of 4,700 kcal/kg at 90.0% plant load factor Coal Source: Mahuagarhi coal block, located in Rajmahal coalfields, Jharkhand Estimated annual CO2: Source of financing: Axis Bank, Punjab National Bank and UCO Bank

Contact

 * Web: http://power.abhijeet.in/p_details.php

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