New Delhi, Oct 24 (PTI) The Tehri Hydro Development Corporation said Wednesday its Khurja thermal plant would supply power at competitive rates and is equipped with a technology to reduce emissions which would be 50 per cent less than permissible levels.

Rejecting a report that claimed the proposed Khurja coal power plant in Uttar Pradesh will push up the electricity cost and increase air pollution levels in Delhi, THDC India Limited (THDCIL), formerly known as Tehri Hydro Development Corporation Ltd, said, "this is totally baseless and appears to be motivated."

The report by the Institute for Energy Economics and Financial Analysis (IEEFA) evaluating THDC's proposed Khurja coal power plant has recommended re-evaluation of the proposal against severe air pollution levels in Delhi.

THDCIL is a joint venture of the Centre and Uttar Pradesh government with equity sharing in the ratio of 3:1 (75:25 per cent).

The state-run firm said that the Khurja Super Thermal Power Project is being implemented by THDCIL and power purchase agreements (PPA) for the entire off take of power have been signed with various beneficiary states of northern region including Uttar Pradesh.

UP has has signed PPA for 60 per cent power allocation from the project.

"The first year tariff is estimated at 390 paise per unit while levellised tariff is 361 paise per unit considering the coal supply form Amelia Coal Mine and is duly vetted by Central Electricity Authority. It is the price which is quite competitive and reasonable," THDCIL said in a statement.

Amelia Coal Mine in Singraulli (MP) has been allotted by Ministry of Coal to THDCIL for meeting fuel requirement of Khurja STPP.

As per the IEEFA report, the estimated tariff is about Rs. 5.67 per unit which seems to be based on very low grade Coal of gross calorific value (GCV) around 2800 Kcal per kilogram whereas the average coal grade of Amelia mine is with GCV of about 4750 Kcal per Kg, the statement said.

THDCIL said that there would be a coal price difference of about Rs 2 per unit which stipulates that IEEFA report has not considered realistic figures while speculating the tariff of Khurja STPP and "Thus, their estimate is bogus and unrealistic."

Rejecting the allegations around rise to pollution level by the plant, THDCIL said that the proposed Khurja project is based on latest supercritical technology, equipped with Flue Gas Desulfurization (FGD), etc to meet out even stringent norms which are less than about 50 per cent of that prescribed under Central Pollution Control Board norms.

"Khurja Supercritical Plant will be having pollution levels below 50 per cent of even the permissible limits prescribed," the statement said.

THDCIL said Khurja is situated in South East direction of Delhi and prominent winds flow from Delhi towards Khurja rather than Khurja to Delhi and therefore, Khurja Thermal Power Plant "will not contribute to any air pollution in Delhi", the statement said.

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