The 500 MW Unit-4 of NTPC Simhadri Super Thermal Project at Parawada near here has started commercial operations – six months after it went on stream -- even as the company is set to breathe easy with improvement in coal supply position.

The company, which has 500x4 MW units as part of Stage-I and II of the Rs.10,000-crore project, is set to overcome coal shortage with the State government agreeing to supply 7,000 tonnes per day in addition to the early availability of 3,500 tonnes from Singareni Collieries Company Limited (SCCL).

Agreement signed

NTPC Simhadri which signed an agreement with suppliers in Indonesia for purchase of coal to meet part of its requirement, will blend Indian and imported coal in the ratio of 80:20.

“We are very happy that the first consignment of 1.5 lakh tonne will reach Gangavaram Port on October 8. The Andhra Pradesh government will arrange supply of 7,000 tonnes per day from Singareni with immediate effect,” NTPC Simhadri General Manager In-charge D.K. Sood told The Hindu on Sunday.

NTPC Simhadri has signed agreement for purchasing 4.5 lakh tonne of low caloric coal from Indonesia for a period of three months.

With the commissioning both units under Stage-II (unit-4 went fully commercial on September 30), Simhadri’s coal requirement has doubled to 36,000 tonne per day.

The power availability to the State, which is reeling under severe shortage for past several months, is set to improve with the Unit-1 of NTPC Simhadri, which was shutdown for maintenance, resuming production from Monday, October 8.

Mr. Sood said with the reviving of power generation from Unit-1, Andhra Pradesh would now get 1,000 MW from Stage-1 and 452 MW from Stage-II. Of 1,000 MW produced from Stage-II, other States as per Gadgil formula will get in the following order: Tamil Nadu 233 MW, Karnataka 208 MW, Kerala 95 MW and Puducherry 12 MW. AP gets entire 1,000 MW from Stage-I under a special arrangement.