MANGROL: Mining and Thermal Power Plant
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MANGROL: Mining and Thermal Power Plant Sector – Industries Nishant Alag, R.Sreedhar, Rajesh Kapoor Prepared for the Government of Gujarat Supported by World Bank under Non-Lending Technical Assistance on Strengthening and Transformation of Institutions for Management Land Acquisition and Resettlement and Rehabilitation CONTENTS 1. Overview of Energy Sector in Gujarat 1 2. Surat Lignite Power Plant (SLPP) and Captive Vastan Mines 2 3. Institutional Efforts 5 4. Concluding Remarks 6 Annexure I - Power Projects In Gujarat - Installed Capacity Of The State 7 Annexure I A - Capacity Addition During 2007-2012 8 Annexure 2 - Demographic Characteristics of Villages around SLPP – Mangrol Taluka, District Surat 9 Annexure 3 - Agriculture, Economy and Land Utilisation in Villages Around SLPP 10 1.0 OVERVIEW OF THE ENERGY SECTOR IN GUJARAT The state of Gujarat is seeing an unprecedented growth1. Rapid industrialisation over the years has raised the demand for reliable electricity supply. Currently the state has a total installed capacity of 9612 MW2. The gap is of course widening with the pace of industrial approvals and thus the need for electricity. The GoG has an ambitious plan for capacity addition of 11164 MW by the end of 2012 using a mix of thermal and gas based power generation. Electricity Generation in Gujarat (March ‘08) Fuel Based Classification Capacity (MW) % Gas 1889 19.65 Oil 220 2.29 Coal 4525 47.08 Lignite 715 7.44 Hydro 779 8.10 Coal/Gas 500 5.20 Gas/Naptha 305 3.17 Nuclear (central sector) 559 5.82 Unallocated quota from central sector 120 1.25 Total 9612 100 Source: EPD The power policy realizes the fact that ‘The State has tremendous geographical advantage for port based power plants using imported coal or liquid fuel like LNG, Naphtha and natural gas. This potential has remained largely unexploited till now. In building the future perspective for power development in the State, this potential is going to play a very important role’. The capacity addition during the 11th plan is also envisaged over the next four to five years to give a boost to the energy sector. Coal is seen as the major focus for capacity addition. 59% of the total capacity addition of 11,164 MW is to be met through coal (see figure3). Despite the fact that the state has limited lignite deposits to open up for energy generation and potential for hydropower is also limited, preference for coal, despite its high cost is being explored.4 Lignite deposits are available in Districts of Kutchh, Bharuch, Bhavnagar and Surat. GSECL is the energy generation agency5 in the state and GUVNL is the holding company. The electricity distribution business is operated through four regional companies (North, South, Central and Western). 2.0 SURAT LIGNITE POWER PLANT (SLPP) AND CAPTIVE VASTAN MINES GIPCL was incorporated in 1985 as a public limited company under the auspices of Government of Gujarat to produce electricity. Currently the company has two power stations located in Vadodara and two units located in Mangrol, District Surat. 1 Growth rates have been over 10% in the last four financial years 2 See Annexure I 3 See Annexure IA for details 4 The cost of coal in Gujarat comes to an average of Rs.1436.5 per MT compared to Rs.710 per MT for Maharashtra, Rs.730 per MT for Rajasthan and Rs.400 per MT for Madhya Pradesh (Power Policy, Gujarat) 5 GSECL is a power generation company promoted by the erstwhile Gujarat Electricity Board 1 Table 1: GIPCL Units in Gujarat S.No. Plant Unit Fuel Capacity (MW) 1 Vadodara Station I Gas 145 Station II Gas/Naptha 160 2 Surat Lignite Power 2 units – 1X 125 MW Lignite 250 Plant, Mangrol SLPP Expansion Additional 2 units Lignite6 250 (Phase II) under construction Source: GIPCL & www.sebi.gov.in/dp/gujarat.pdf SLPP is an integrated unit with its two power units, mining lease as well as the residential colony and was commissioned in the year 1999. The total land acquired for the three components i.e. plant area, ash disposal area and colony is approximately 1600 Hectares. The current lignite requirements are met from the captive mines at Vastan located 7kms SW of Mangrol and the power plant is located 2kms SE of the mine on SH65. The plant is based on Circulating Fluidized Bed Combustion (CFBC) Boilers technology, which is supposedly relatively eco-friendly. Table 2: Production Details of Surat Lignite Power Plant 2 x 125 MW Financial Year Particulars Units 2005-06 2006-07 2007-08 Generation MU 1874.13 1751.94 1878.541* PLF % 85.58 80.00 85.54 Availability Factor % 87.97 83.13 87.76 * Highest ever since commissioning The company is in the process of acquiring additional land (table 3) for expansion of SLPP to double the existing capacity of the plant. The existing captive mine at Vastan is linked to the power plant through a conveyor belt (3km running length) and this arrangement has proven cost effective due to negligible transportation cost. It is estimated that (considering all the three mines) these mines have sufficient reserve for fuelling a 1000MW capacity power plant over the next 30 years. The most important feature of this expansion is that all the three mining leases are contiguous and form a large land tract, which will be used for mining operations and ash disposal. 6 The total reserves of lignite are estimated close to 2100 million tones and the mineral is spread in the District Kutch, Surat, Bhavnagar and Bharuch. 2 Vastan Mine, SLPP – Mangrol Table 3– Lease Detail & Characteristics of Mineral Blocks, Mangrol & Valia Taluka Location Area Approximate Extractable Overburden Stripping allocated affected Reserves Ratio (hectares) villages (MT) Vastan, Distt. Surat 1,536 11 42 512 1:12 (existing) Mangrol – Taluka, 1,210@ 8 126 691 1:6 Distt. Surat Valia-Mangrol, 857 (510 for 7 44 266 1:6 Distt. Surat Valia (expansion) section & 347 for Mangrol section) Total 3,603 26 212 1469 Source: GIPCL & MoEF: @ in-principle approval from GoG The annual intake of lignite is estimated at 1.2 MT per annum with a strike length of 6kms and is free of any geological disturbances. The other advantage is that no blasting is required as the overburden and interburden consists of alluvium and soft gypsiferous & fossiliferrous variegated clays. The original village settlements were not acquired but the agricultural lands in the vicinity of the village were acquired by the company. Village Vastan, Nani Naroli, Surali are among few villages in close vicinity of the plant and mine. 3 Vastan Lignite Mine SLPP N Villages Around SLPP SLPP is one of the first to adopt CFBC technology to control air emissions and electrostatic precipitators for control of particulate matter. Although mining of lignite leaves behind lots of overburden and plant operations result in huge amount of fly ash generation which continue to provide challenging issues for the company. It is estimated that 1 tonne of lignite produces around 12 Cu.M of muck/overburden, as one has to stockpile this overburden over a specified land zone. Similarly average daily flyash7 generation is about 5000 T. The open cast Vastan lignite mine is managed by preserving the fertile top soils and spreading them over the back filled portion of the 7 The trust has established flyash brick manufacturing units for their plant/mining area consumption and for village infrastructure improvement. The company also sells flyash to willing buyers to manufacture bricks in the hinterland. 4 mine. Flyash utilization is among the priority areas of the company, almost all the flyash generated from SLPP is used for construction of mine roads, bricks and back filling of lignite mines. One of the concerns of backfilling with flyash is that over a period of time, leaching might take place and it may interfere with the groundwater systems. The risk sometimes is that this stockpile may erodes/slide depending on maintaining specified angle of repose. The team involved in mining also acknowledges the fact that there are few instances where such incidents take place and if these incidents impact surrounding settlements, those are compensated accordingly. 3.0 INSTITUTIONAL EFFORTS DEEP is a Trust promoted by GIPCL since 1996. While GIPCL’s core competence and business is mining and electricity generation, DEEP8 on the other hand works towards development programmes in the eleven programme villages around the plant9. There is one designated officer who looks after LA and community development. This zone around Mangrol has witnessed tremendous interest of companies for mining and industrial projects, which has also resulted in competitive environment as far as land prices are concerned. In an instance, GMDC offered Rs. 3.83 Lakhs/ha and subsequently GIPCL had to raise the amount to Rs. 4.50/ha as people expected higher price than the already offered price in the region. Around 500 blocks of land was acquired by GIPCL of which 429 blocks belonged to people i.e. private land. DEEP adopted the strategy of one-to-one counseling10 with the people of the area who were to loose land. With the expansion of SLPP, the people are expecting a competitive price11, the belief is that even the earlier compensation was substantial but with the growing demands and rising prices elsewhere, price of land shall be based on the prevailing rates. The consultation strategy adopted by DEEP was two fold i.e. initial briefing of the issue with the panchayat and villagers and finally adopting individual interactions to reach to a consent award. The trust receives funds from GIPCL and initiated community programmes over the years.