Canasia Power Expands Indian Power Plant Project to 1,320 Megawatts

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Researched by Industrial Info Resources (Sugar Land, Texas)--Canasia Power Corporation (Toronto, Ontario) has announced that it will increase the capacity of Phase I of its $1 billion Jawaharpur power project by 65% to 1,320 megawatts (MW). Canasia had earlier envisaged setting up an 800-MW coal-based plant using low-temperature subcritical technology at Etah, Uttar Pradesh. It will now employ supercritical clean coal technology for the expanded project as a measure to increase thermal efficiency and mitigate environmental impact.

In 1993, Canasia's wholly owned Indian subsidiary, Jawaharpur Power India Private Limited (Gurgaon, Haryana), secured the project from the state government of Uttar Pradesh, which had also issued a counter-guarantee to Canasia to buy all the power generated by the unit for a period of 30 years through the Uttar Pradesh Power Corporation Limited (Lucknow, Uttar Pradesh).

Canasia recently awarded a turnkey contract for equipment, procurement and construction (EPC) to China National Electric Equipment Corporation (Beijing), China's state-owned EPC major. The project will be designed and constructed by a consortium of Indian and foreign companies that will be formed through an international bidding process. There will be an emphasis on Canadian participation that could amount to $300 million to $400 million. Canasia will own a majority stake in the project.

Canasia is also considering setting up a third unit with a capacity of 660 MW subsequent to financial closure of Phase I and depending on the availability of coal. The company is currently constrained by the limited availability of coal because of increasing demand and soaring prices of the fuel in Asia. The increase in capacity is driven by the need to address power scarcity issues in the state. The project has the potential to provide up to 20% of the state's electricity requirements. It is also expected to reduce air pollution in the neighboring cities of Agra and New Delhi by ensuring a reliable supply of power that will eliminate the use of diesel generators as power backup units in the cities.

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