Govt kicks off process to sell two loss-making power units at Giral

Amid the power crisis in Rajasthan, the state government has started the process to sell two power units of total 250-MW at Giral in Barmer district.

The government has taken the step considering the revenue loss from the units, as ever since the commencement, the units have failed to achieve their anticipated power generation.

The Rajasthan Rajya Vidhyut Utpadan Nigam Limited, which controls the Giral project, had on February 19 floated a tender for appointing the consultancy firm for managing the strategic sale of the project. The consultancy firm is likely to be finalised by March 11.

Giral Lignite Thermal Power Project managing director HK Singhal confirmed the move. “According to the norms of Rajasthan Electricity Regulatory Board, when a unit fails to achieve 75 percent of its anticipated capacity, it is considered a loss-making project. In such a scenario, government can review the project planning,” Singhal said. He claimed that ever since the commencement, the two units of Giral lignite thermal power project were unable to achieve even 25 percent of their generation capacity.

He said the company is trying to explore some alternative measures such as steps to reduce revenue loss and to give the entire project on contract to private companies.

If such options fail, the company will be left with just one option and that is to sell the project, he added.

These two lignite-based power units were designed by the Bharat Heavy Electronic Limited (BHEL). Officials said that BHEL had designed the units for lignite with 1 percent sulphur content, but the lignite available in the area has 5 to 6 percent sulphur content. The presence of higher sulphur content in lignite is a big hurdle in the operation of units.

According to sources, JSW, Reliance and Adani group are in race for buying the Giral power project.