Author: PPD Team Date: 11/03/2025

The project has seen multiple delays and cost escalations but is now progressing towards completion.

 

The Panki thermal power plant, initially scheduled for commissioning by September 2021, is now expected to enter its trial run soon. Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) is constructing the 660 MW supercritical thermal power project in Kanpur district, Uttar Pradesh, as an expansion of the existing 220 MW Panki thermal power plant, which was commissioned in 1977. The project’s originally proposed capacity of 250 MW was later revised to 660 MW. The estimated cost, initially set at Rs 58.2 billion, has now risen to Rs 67.8 billion, with Rs 66 billion already spent.

Land, water, and coal linkage for the project are already available. The estimated annual coal requirement at 85 per cent plant load factor (PLF) is 2.76 million tonnes. Domestic coal will be sourced from the Saharpur-Jamarpani coal block in Jharkhand, which has been allocated for the project. The coal mine is located 896 km away, making it a non-pithead project. The expected coal grade is G-10. In February 2016, UPRVUNL applied for a bridge linkage, which was recommended by the Standing Linkage Committee of the Ministry of Coal (MoC) on March 18, 2016, for three years from the date of coal block allotment. The estimated water requirement is 1,650 cubic meters per hour (18.9 cusecs) and will be met through the existing allocation from the lower Ganga Canal. The Uttar Pradesh cabinet approved the project in July 2014.

The Expert Appraisal Committee (EAC) of the Ministry of Environment, Forests and Climate Change (MoEFCC) recommended the Terms of Reference (ToR) for the project on August 1, 2014, which were granted on September 16, 2014. The project received a Rs 37.7 billion loan from Power Finance Corporation Limited (PFC) in December 2015. In March 2016, the Standing Linkage Committee approved the configuration change from 1×250 MW to 1×660 MW. The EAC initially deferred environmental clearance (EC) in June 2016 but later recommended approval in April 2017. The clearance was granted on June 29, 2017.

Bharat Heavy Electricals Limited (BHEL) secured the engineering, procurement, and construction (EPC) contract worth Rs 44 billion on March 31, 2018. Several contracts followed, including the construction of a boundary wall, roads, drains, and coal stockpiles, awarded to Jyoti Sarup Mittal on August 16, 2018, for Rs 258.93 million. L&T GeoStructures Limited won a Rs 1.66 billion contract on September 18, 2018, for piling and related works. Bygging India Limited secured a Rs 347.3 million contract on December 1, 2018, for constructing a 275-meter-tall reinforced cement concrete (RCC) chimney with borosilicate glass lining. Kanwar Enterprises Private Limited received multiple contracts, including a Rs 534.7 million contract on December 5, 2018, for constructing a raw water reservoir and a Rs 794.6 million contract on December 28, 2018, for an ash handling plant and ash dyke.

Simplex Infrastructures Limited (SIL) was awarded a Rs 2 billion contract on December 19, 2018, for civil and structural works of the main plant and Balance of Plants (BoPs). Additional contracts included the piping works contract for Rs 67.71 million awarded to G&J Contractors, Fabricators and Erectors on March 5, 2019. The foundation stone for the project was laid by the Union Government on March 8, 2019. Several bid invitations followed, including those for coal handling and gypsum handling plants in April 2019 and flue gas desulphurization (FGD) system installation in July 2019.

In November 2023, UPRVUNL completed the boiler light-up test. On March 22, 2024, BHEL invited bids for balance structural steel works of the coal handling plant. Several firms have been shortlisted for different aspects of the project, including Brothers Engineering and Erectors Limited, Kumar Creations Private Limited, and Swamina International Private Limited. Additional contractors have been selected for civil and architectural works related to the coal handling plant, including Dhandu Infrastructure Private Limited, M/s Jadunandan Singh Engicons Private Limited, Radtech Buildcon Private Limited, and Vishnu Saran and Company.

As of December 31, 2024, the main plant package, awarded to BHEL, has achieved significant progress. The boiler is 93 per cent complete in civil works, 89 per cent in structural works, and 98 per cent in pressure parts installation. The turbine generator (TG) unit is 82 per cent complete in civil works, 91 per cent in structural works, and 92 per cent in auxiliary installations. The electrostatic precipitator (ESP) is 92.83 per cent complete, while the flue gas desulphurization (FGD) system is 50 per cent complete in civil work, 53 per cent in material supply, and 12 per cent in erection work.

The project has seen multiple delays and cost escalations but is now progressing towards completion.

The featured photograph is for representation only.

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