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OPG Power's new plant at Gujarat starts operations

Published: 17:12 14 Apr 2015 AEST

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OPG Power’s (LON:OPG) new Gujarat plant has commenced commercial operations, the Indian power supplier said today.

Power is currently going through an interim transmission line but output will ramp up towards September as additional transmission capacity becomes available.

At full output, the coal-fired Gujarat station will produce 300 megawats (Mw) and double OPG’s existing output. Tariffs will average around Rs 5.00 per kWh (kilowatt hour) in 2016 while costs will be lower than its stations in Chennai.

Gujarat has been among the most progressive states in India in implementing new capacity, said OPG, with tariff increases and fuel price adjustments designed to encourage investment.

At its other new development, the 180Mw Chennai IV, first coal has been purchased and commercial operations are scheduled to begin around the end of April.

OPG added that trading this year has been in line with expectations with average load factors of 91% at its three existing stations.

Average tariffs also increased and while interest costs have reduced in line with lower Indian base rates.

OPG added that to meet its growth targets, it expects coal-fired power to remain the largest contributor to India's energy needs for some time to come.

Arvind Gupta commented on the developments: "We're delighted to have delivered another project in a second location.

“It's not just about the scale - with operations across two separate locations in India, we are now more diversified.

“Over time, we will seek to augment this broadened platform and to play our full part in the revival of India's power sector."

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