Vedanta Resources has outsourced the operation and maintenance of its Rs 8,200 crore power project in Orissa to Germany-based Evonik Energy.
The operation and maintenance (O&M) agreement was signed between Sterlite Energy, a subsidiary of the metal and mining group, and Evonik Energy Services India, the local arm of the fifth largest power company in Germany.
“Vedanta group is emerging as one of the leading players in the power sector in India and Evonik is one of the largest players in Germany, I think this will result in an excellent relationship between the companies and add lots of value in our power business,” Vedanta Aluminium Ltd (VAL) Director M. Siddiqi said in a statement.
VAL comprises the aluminium operations of Vedanta Resources. Its operations are primarily based in Orissa, where the 2,400-MW power plant is coming up.
Evonik Energy Services India Managing Director J.T. Verghese said, “The contract (is) a path breaking initiative taken by Sterlite to bring in professional O&M services... of Evonik.”
The statement said the contract was the largest O&M deal signed for any coal-based thermal power plant in India.
Sterlite Energy is in the process of commissioning the first unit of 600 MW by May, 2010, as it aims to open up other three utilities for commercial use within one year.
As per the agreement, the German firm would train the staff and also maintain the online optimisation and diagnostic systems “to achieve the best possible heat rates and high availability.”
“Evonik will also bring in its proprietary plant management system and latest fault prediction systems, which will ensure that the downtime for maintenance is reduced to a minimum,” the statement added.