PM okays grant for APGenco, BHEL project

Chennai, July 20 The Prime Minister, Dr Manmohan Singh, on Thursday approved a grant of Rs 350 crore for the 125-MW Integrated Gasification Combined Cycle (IGCC) project being put up at Vijayawada in Andhra Pradesh, by a joint venture of Andhra Pradesh Power Generation Corporation (APGenco) and Bharat Heavy Electricals Ltd (BHEL). The ‘Technology Demonstrator’ project costs Rs 950 crore. This is substantially higher than a conventional coal-fired project of similar size which would cost between Rs 500 crore and Rs 600 crore. Originally, APGenco was to contribute Rs 530 crore for the project and BHEL, Rs 420 crore. Now it is expected that the Government’s contribution of Rs 350 crore would be taken as part of BHEL’s. “That would be my recommendation,” Mr Jairam Ramesh, Union Minister of State for Power, told Business Line on... [read full story]