China Light and Power (CLP) India has finally got the technical approval from the Central Electricity Authority (CEA) for its 1,200 MW gas-based power plant in Gujarat, expected to cost Rs 6,000 crore involving expansion of its existing Bharuch plant.
The expansion has been held up due to unavailability of natural gas as fuel.
Currently, the spot prices are at approximately $15 million per unit, and going by this, the variable cost itself will be close to Rs 4.50 a unit. With fixed charges and transmission charges, the total cost per unit will be well over Rs 6 per unit.
Unlike many gas fuelled power projects under construction, the company does not plan to construct the project before a committed fuel allocation.
CLP currently has an installed capacity of 900 megawatts and around 1,600 megawatts under construction including those from 10 wind power projects. It also plans to invest in projects accounting to 10,000 MW by 2015.