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Fire shuts down Mundra UMPP till November 24

17 November 2013

Business Standard

Coastal Gujarat Power Limited expects to incur financial loss of Rs 206 crore due to generation loss of 912 million units

The 4,000-Mw Mundra ultra mega power project (UMPP) in Gujarat has been shut since Thursday after a major fire broke out at the site. This is the first fire at the site after the Mundra UMPP became fully operational with five generating units of 800 Mw each, on July 30, 2012.

Tata Power-owned Coastal Gujarat Power Limited (CGPL), which runs the UMPP, has informed the Western Region Load Dispatch Centre (WRLDC) and the power drawing states of Gujarat, Maharashtra, Haryana, Rajasthan and Punjab that repair is underway and generation will be restored by November 24.

While the plant would start functioning from November 24, power supply is expected to begin from the morning of November 25. Full restoration of the station is likely by December 3, said a company source.

Owing to the plant's closure, CGPL is expected to incur a generation loss of 912 million units worth Rs 206 crore. The financial loss is estimated at the levelised rate of Rs 2.26 a unit.

A WRLDC officer, who did not wish to be identified, told Business Standard: "According to our records and the company's communication, the fire broke out at 4.30 am on November 14 when the Mundra plant was generating 3,040 Mw from four units. Unit No. 2 was under shut down for the inspection of generator and transformer. In stages, the plant ultimately stopped operations from 3:00 pm on the same day. The company has cited fire and the subsequent damage to the conveyor belt as the cause of the stoppage of power generation and the closure of the plant."

Gujarat, which has 47.5 per cent share in the drawal of power from the Mundra UMPP, will have a generation loss of 433 million units followed by Maharashtra (20 per cent share) at 180 million units; Punjab (15 per cent share) at 114 million units; and Harayana and Rajasthan (both 10 per cent share) at 91 million units each.

A company spokesman said: "Coastal Gujarat Power Limited would like to inform that generation from the UMPP has been temporarily shut down due to a technical incident. At this stage, immense importance is placed on measures to deal with this incident and the conveyor repair work is in progress. All efforts are being made to expedite the matter. The generation is expected to start from November 24 onwards progressively. Full restoration of the station is likely by December 3. CGPL would like to reiterate its commitment towards safety in and around the UMPP while ensuring reliable power to all its buyers."

According to the official, of the 912 million units, Gujarat, which has 47.5% share in the drawal of power from Mundra UMPP, will have generation loss 433 million units followed by Maharashtra (20% share) 180 million units, Punjab (15% share) 114 million units, Harayana (10% share) 91 million units and Rajasthan (10% share) 91 million units. This apart, the loss of coal due to burning and damage to various equipment and also due to repair and restoration expenses will further increase.

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