Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 1of 18 PRE-FEASIBILITY REPORT FOR ENVIRONMENTAL IMPACT ASSESSMENT (EIA) STUDY FOR Proposed Gas Supply Infrastructure for Andaman & Nicobar Power Project IN HOPE TOWN AT FERRARGUNJ TEHSIL DIST. SOUTH ANDAMAN (ANDAMAN & NICOBAR ISLANDS) NTPC VIDYUT VYAPAR NIGAM LIMITED (NVVN) (A wholly owned subsidiary of NTPC Ltd.) August, 2019 Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 2of 18 TABLE OF CONTENTS Sl. No. Description Page No. 1.0 Executive Summary 1 2.0 Introduction of the Project & Background Information 1 3.0 Project Description 6 4.0 Site Analysis 9 5.0 Brief Planning 10 6.0 Proposed Infrastructure 11 7.0 Rehabilitation and Resettlement (R&R) Plan 12 8.0 Project Schedule & Cost Estimates 12 9.0 Analysis of Proposal ( Recommendations) 12 10.0 Environmental Aspects 12 EXHIBITS Exhibit Description Page No. No. I Index Map 14 II Vicinity Map 15 III General Layout Plan 16 IV General Features 17 ANNEXURES Annexure Description Page No. No. I Climatological Table at Port Blair 18 Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 3of 18 1.0 Executive Summary Name of Project: Proposed Gas supply Infrastructure for Andaman & Nicobar Gas Power Project at Hope Town in Ferrargunj Tehsil of South Andaman District. Name of Project Proponent: NVVN, 100% Subsidiary of NTPC Ltd. Location of the Project: The project site is located in Hope Town at Ferrargunj Tehsil in South Andaman District of Andaman & Nicobar Islands. Nearest National Highway NH-223 is at a distance of 8.4 km in WNW direction. Nearest major city is Port Blair located at a distance of 7.9 km SSE to the project site. The vicinity map of the project is shown in Exhibit-I. Capacity: 0.065 MMTPA of LNG/85 MMSCM RLNG Gas shall be handled annually. Accordingly the size of the related gas infrastructure shall be designed. Land Requirement, Current As proposed project is floating on seawater, no land would Land Use and Availability: be required. Water Requirement and About 3 m3/day of water is required for domestic purposes, Availability: which will be met from desalination of sea water. Environmental Setting of As per Environmental Impact Assessment Notification dated the Project 14th September, 2006 and 01.12.2009, the proposed project falls under schedule 6(a) of category ‘A’. The proposed location of Gas Supply Infrastructure falls in ICRZ-III area. However, facilities for receipt and storage of petroleum products and liquefied natural gas are permitted in this area as per ICRZ Notification, The project will require a) Environmental Clearance b) CRZ Clearance & c) Wildlife Clearance from MOEF&CC. The necessary process for obtaining these clearances shall be followed by NVVN. Cost of the Project: Approximate capital cost of the project would be about Rs. 500 Crore. 2.0 Introduction of the Project & Background Information 2.1 Identification of Project & Project Proponent NTPC Vidyut Vyapar Nigam Limited (A wholly owned subsidiary of NTPC) has been established with an objective, inter alia, to carry on the business of Purchase / Sale Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 4of 18 of all forms of electrical power including surplus power from NTPC stations for sale to SEBs, Power Distribution Companies, other organizations and bulk power consumers etc., in India and abroad. NVVN has also carried out the implementation of 1000 MW National Solar Mission (NSM) Phase-I scheme of Government of India as a Nodal Agency for selection of the Solar Power Projects and Long term PPAs for purchase of Solar power and PSAs for sale of bundled power to Discoms. NVVN has been carrying out sale of 733 MW Solar Bundled Power to 21 Discoms under NSM Phase I. In the Financial year 2017-18, NVVN had traded 17,278 Million Units (MUs) apart from Renewable Energy Certificates (RECs) equivalent to 104 MUs and Energy Saving Certificates equivalent to 7,45,826. NVVN is a profit making company and has been consistently paying dividend to NTPC. During a meeting held under the Chairmanship of Hon’ble Minister of State (I/C) for Power & New and Renewable Energy on 10.01.2018, in which UT of Andaman and Nicobar Administration, Ministry of Home Affairs (MHA), Central Electricity Authority (CEA), Ministry of New & Renewable Energy (MNRE), NTPC Ltd, NLC India Ltd, Petronet LNG Ltd, PGCIL, Solar Energy Corporation of India (SECI) participated, power related issues of Andaman & Nicobar (A&N) Islands were discussed and Hon. Minister stressed upon the need for finding Short Term and Long Term Power Solutions to meet the Energy Requirement of Andaman & Nicobar Islands. Subsequently, A&N Administration requested NTPC for installation of 55 MW Dual Fuel (Diesel and Liquefied Natural Gas (LNG)) based power project to meet the Long Term Power Solutions of Andaman & Nicobar Islands. Feasibility Report for a 55 MW Dual Fuel (Diesel and LNG) based power project has already been prepared by NTPC Limited and the project has been handed over to NVVN (A wholly owned subsidiary of NTPC) for implementation. Initially, it was envisaged that LNG required for the Power Project shall be met from M/s Petronet LNG Ltd (PLL)’s proposed LNG Terminal to be set up at Hope Town in Port Blair. However, subsequently, it was decided by GoI that the procurement of LNG shall also be done by NTPC and the fuel supplier would be identified through a Global tender. The gas supplier will decide the technology and capacity of gas infrastructure depending upon the techno-commercial viability. The possible technological options are discussed in the paragraph below. The present proposal is to establish a Gas supply Infrastructure with suitable technology to procure and supply the gas to the proposed Power Project at Hope Town. The Gas infrastructure and power project will be located adjacent to each other at Hope Town, Port Blair in A&N islands. The power project being developed by NVVN is envisaged to be commissioned during 2021-22. The Gas Supply Infrastructure for supply of gas by the party to be selected through global tender, is proposed to be commissioned by year 2022. Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 5of 18 2.2 Need for the Project & Its Importance to the Country & Region Proposed Gas supply Infrastructure is a dedicated unit to supply Gas to proposed gas power project, which is being set-up to meet the power requirement of A&N Islands. The detailed analysis of demand supply gap and justification for the project is presented in section 2.3. 2.3 Demand Supply Gap in Power The power project (55 MW) is envisaged to meet the power demand of Andaman & Nicobar Islands. It is expected to start yielding benefits from 2021-22. Being disconnected from the mainland, the A&N Islands relies on isolated power generation, powered by the Diesel Generation Systems. The power generation and distribution system of Andaman and Nicobar islands is served by standalone systems and each island has its own generation & distribution system. The power requirement of Andaman & Nicobar Islands is met mainly from Government owned diesel generation units with balance power purchased from Independent Power Producers (IPP). Power Generation Portfolio: (Dec-2015) SL.No. Generation Installed Capacity (MW) Percentage 1. Diesel 99.20 90.64 2 Hydro 5.25 4.80 3. Solar 5 4.56 Total 109.45 MW From the details of installed power plants in A&N Islands, it is observed that concentration of Diesel Power Plants (59 MW) is highest in South Andaman, where approximately 64 MW out of total base of 109.45 MW is installed. Conclusion As per above demand & supply scenario analysis, the sales of electricity is projected to grow from 229 MU in FY15 to around 330 MU by FY19 at a CAGR of 10% with Peak demand expected to grow from around 58 MW to around 68 MW by FY19. Moreover, out of the 99.2 MW DG capacities, about 51.745 MW of DG capacities has already outlived their lives thereby making the effective available DG capacity as 47.465 MW. In order to meet the increasing power demand (CAGR of 10%) of A&N Islands while reducing dependency on conventional diesel generation sets (DG Sets), the proposal for setting up of 55 MW Power Project, which would help in reducing the diesel consumption through cleaner and cheaper fuel (Gas as primary fuel) is justified. Doc. No.6400/ NVVN/RE/2019-04 NVVN Pre-feasibility Report for Proposed Gas Supply DATE: 13.08.2019 Infrastructure for Andaman & Nicobar Power Project REV. NO. : 0 Page 6of 18 To meet the fuel requirement of proposed power project, installation of a Gas supply infrastructure is mandatory and justified. 2.4 Employment Generation (Direct & Indirect) due to the Project Gas supply Infrastructure shall be a mechanised and automated plant, therefore, the direct opportunities for employment during operation phase are limited. However, due to increased availability of gas and power, the opportunities for self- employment and business activities shall increase.