Facor Power Ventures is a special purpose vehicle of Facor Group to develop a 600MW supercritical coal based thermal in the state of Chhattisgarh.
In India, thermal based power generation is predominant as we have over 300 billion tonnes of coal reserve. Now over one-third of power generated is from coal based power. To drive economic growth, electricity needs to be a prime driver. Coal based capacity provides an important measure for rapid augmentation of electricity. Around 100 GW of thermal power capacity is being planned till 2022. Though over 12 Ultra Mega Power Projects (UMPP) were announced only two became operational and one is under stoppage of work due to coal price.
However, Indian government is actively working to award Cheyyur UMPP, Bedabahal UMPP and Bihar UMPP. Besides 63000 MW of thermal power projects are under construction and around 26400 MW of new capacities are being planned. Around 10000 MW of old thermal pow
India power generation capacity is estimated at 303 GW as of August 2016. Out of this close to one-third capacity is lying unused for a variety of reasons and even the operational ones are having capacity utilization at close to 60%. The government added about 24,000 mw of fresh conventional capacity last year and plans to add 86 gigawatt by 2022. In addition, 100 gigawatt of solar capacity is to be added by 2022.
Some of the reasons for idle capacity are lack of power supply contracts with distribution companies, non-availability of coal, due to water shortage, some due to equipment failure and yet another set has been shut because its operations have turned uneconomical due to age of equipment.
Thermal Power Sector in India in the past 5 years have seen a host of issues like coal scam, legal issues etc., but the main four which hindered the sector are the land availability, shortage of fuel and price hike in imported fuel/ drying out of gas in KG basin, environment and forest clearance. The above four had strangled the sector and is yet to recover after the change in government. Now, even the government is finding tough to acquire lands for the project and is hoping for the new land acquisition act.
Apart from it, the state electricity boards in deep financial trouble are yet to cut distribution losses on par with developing economies. In India, the transmission losses are around 25%, while it is 15% in other countries. The reasons are a variety with inaccurate billing, pilfera