Hyderabad: The cost of Singareni Thermal Power Plant (STPP) second unit has increased by Rs 1,000 crore. Singareni Company, India’s second largest coal mining company, had planned to build the second unit with the 600 MW capacity for Rs 7,573 crore. The company has revised the estimate to the tune of Rs 8,584 crore and has sent the proposal to the state government for approval. The cost increased due to the GST and technical reasons, according to officials.
The first unit of 600 MW was synchronised last year. The Telangana government directed Singareni Company to set up the additional unit to address the energy shortage in the state. Accordingly, Singareni Company has taken up 1200 MW thermal power project.
The company plans to sell 1050 MW to Transco. The second unit was supposed to become operational in June 2016. Singareni Company was permitted a 2x300 MW power plant in October 2009. In December 2010, a new environmental clearance was issued for the 2x600 MW project.
Meanwhile, Singareni Company has proposed to construct the third unit with installed capacity of 800 MW at a cost of Rs 58,796.62 crore. Singareni has sent the Detail Project Report (DPR) to the government, which has given its nod.
