Areva T&D secures fourth Indian contract

Energy transmission and distribution company Areva T&D India Limited recently secured an electrical balance-of-plant contract from GMR Energy Limited for the latter's 600-megawatt MW Warora thermal power plant project in the Chandrapur district of Maharashtra.

The project is expected to help breach the gap between power supply and demand in Maharashtra and the other western states in India. The Warora contract is the fourth such contract secured by Areva T&D in the past two years.

The $27 million contract involves the supply and installation of the two 300-MW thermal power units, the manufacture and installation of a 400/220-kV air-insulated substation, power and distribution transformers, and the associated switchgear equipment. Areva T&D India's President and Managing Director Rathin, said "With leading private and public utilities increasingly preferring cost effective, turnkey electrical balance-of-plant solutions for building and maintaining reliable power system installations, Areva T&D India has established leadership across all industry domains in this fast-emerging segment."

The greenfield Warora project is being executed by the GMR Energy subsidiary Emco Energy Limited and will be completed in two phases. The project is scheduled to be commissioned by March 2012. Land acquisition, coal linkage, water allocation and power evacuation plans for both phases have been finalized. The project has obtained all the key regulatory approvals, and construction has commenced. Given the current project status, the power plant is expected to be completed in a relatively short time.

In February 2010, Areva T&D India secured a $25 million electrical balance-of-plant contract from L&T Power, the power division of engineering and construction major Larsen & Toubro Limited, for the 1,200-MW Malwa thermal power plant in southwestern Madhya Pradesh. The scope of the contract is similar to that of the Warora project. The project is owned by state-operated Madhya Pradesh Power Generating Company Limited and is scheduled to begin operations in September 2011. Set to generate about 28.8 million kilowatt-hours of electricity per day, the project is being funded by the state government and Power Finance Corporation.

In April 2008, Essar Constructions Limited, a subsidiary of the diversified Essar Group, awarded Areva T&D India with an approximately $85 million electrical balance-of-plant and equipment contract. The contract was for two 1,200-MW thermal power plants at Salaya and Mahan in Gujarat, which are being set up by Essar Power Limited.

Commenting on the contract at the time, Basu said, "Electrical balance-of-plant reduces complexity in coordination and improves project delivery time. This is a one-window solution for our key customer, Essar Group, and reiterates our ongoing relationship."