Tata Power mulls conversion of gas-oil unit to coal firing

Tata Power has proposed  to convert its 500 MW unit-6 of its Trombay combined cycle power plant from oil and gas firing to coal.

The conversion will cost Rs 1,105 crore.

According to Tata Power, the cost per unit with oil comes to around Rs 10.68, whereas with gas costs around Rs 6.80 per unit. Coal based generation, on the other hand, costs less than half of the generation based on oil and gas, and comes to around Rs 3.35 per unit.

However, the shift from oil and gas firing to coal firing will set Tata Power back by a whopping Rs 1,105 crore.
The question of coal availability also needs to be considered.