HYDERABAD: In what could turn out to be a major boost for the power sector in Andhra Pradesh, chief minister N Chandrababu Naidu has managed to convince Japanese electricity major Sumitomo Corporation to share its ultra-supercritical technology and set up a 4,000 MW thermal power plant in the state. According to AP energy officials, the technology with Sumitomo is much in demand and the company has agreed to share it and prepare a Detailed Project Report (DPR) as well as ensure funding from the Japan International Cooperation Agency (JICA).

The AP government has tentatively identified Srikakulam district, where government land is aplenty, for setting up the project estimated to cost over Rs 20,000 crore. "JICA is likely to provide us with the loan at 0.3 per cent interest rate payable over a span of 40 years. This is a jackpot for Andhra Pradesh as far as electricity agreements are concerned," Ajay Jain, AP energy secretary, who is in Japan along with Naidu, told TOI over telephone.

Supercritical and ultra-supercritical power plants require less coal per mega watt, leading to lower emissions, higher efficiency and lower fuel costs. Conventional coal-fired power plants, which boil water to generate steam that activates a turbine, have an efficiency of about 32%, whereas ultra-supercritical plants operate at temperatures and pressures above the critical point of water and provide efficiency of above 45%.

Though Sumitomo has offered to provide the technology, prepare the DPR and help in getting funds from JICA, the AP government has made it clear to the company that it will have to participate in the tender process in order to bag the project. "Only the company that quotes the best bid will get the project. There is no question of deviating from the tender process," Jain said.

