Jamshedpur: Tata Sponge is setting up a 25-mw plant for sale of power to Tata Steel units. The company already produces around 26 mw power by using the waste heat of its kilns at Bilaipada in Joda block of Keonjhar district of Orissa.
Speaking to FE, Tata Sponge managing director Suresh Thawani said, “We are spending R185 crore for producing another 25-mw unit, based on a AFBC boiler technology, which will burn char from kiln number 1, 2 &3.”
Though some extra coal and coal fines would also be needed to run the new power plant, the company would in the process be burning the environment-unfriendly ‘char’ that comes out of the kilns now. The project, which got the board’s nod on March 28, is awaiting environmental clearance.
“Once environmental clearance is obtained, say in June 2011, it would take another 30 months to complete the project,” said Thawani, adding the entire (26 mw) power generated at the plant would go to one or the other Tata Steel units in Orissa. Tata Sponge had recently entered into an agreement with Tata Steel for supply of 6 mw power to its nearby ferro-alloy plant at Joda.