TOI reported that Singareni collieries will enter into the field of power generation by setting up a 600 MW coal-based power plant at Jaipur mandal in Adilabad district and Mr K Rosaiah Chief Minister of Andhra Pradesh would soon lay the foundation stone for the project that is scheduled to become operational by 2012.

The officials of the energy department told Mr Rosaiah at a review meeting on the power situation and status of ongoing power projects in the state that the project is estimated to cost INR 2,700 crore. This would not only give an impetus to the growth of Telangana region, but also help the state to bridge the demand supply gap in power sector to a large measure.

The SCCL would generate equity from its internal resources and the balance would be mobilized as debt. The remnant coal locked up permanently in an abandoned mine at Srirampur would be sourced for the power project. This mine would produce about 2.5 million tonnes per annum. Being a pit-head power station, the project would have several locational advantages including abundant availability of coal and water.

SCCL had already acquired land for the project and obtained necessary environmental clearance. The company was in final stages of negotiations with BHEL regarding plant equipment supplies and would soon enter into a Power Purchase Agreement with AP Transco and Discoms for sale of power. The project is expected to be synchronized to the grid by December 2012.

(Sourced fro timesofindia.indiatimes.com)