|Shahpurkandi Extension was originally conceived with a total installed capacity of 55.5 MW. This project is proposed to be developed by re-modeling the existing UBDC canal from Madhopur Head Works up to RD 65000 ft. It involves construction of 3 No. PHs as under :
Power House No.I = 2×10.5 = 21.0 MW
Power House No.II = 2×10.5 = 21.0 MW
Power House No.III = 2×6.75 = 13.5MW
Total = 55.5 MW
The capacity of the channel after remodeling shall be 13500 cusecs and the total length of the channel will be about 20 KMs. The cost of the project is approximately Rs. 500 Cr. at Nov. 2000 price level and the annual generation shall be about 192 MU. The project was to be developed on BOOT basis. Chief Engineer/SPKD has been requested to revise the DPR so as to arrive at the current cost of the Project.
The Punjab Government vide its notification no. 1/5/02/SK-02/17077 dated 20.8.2002 had cleared the project for its execution. It was decided in the meeting held on 21.05.2002 under the chairmanship of Chief Secretary, GOP that due to financial constraint, the possibility of developing this project through private investment be explored.
The project was not considered techno-economically viable on dependable year basis by the Special Purpose Technical Committee (SPTC) in its 32nd Meeting held on 24-04-2003. The post Ranjit Sagar Dam water releases available in the river Ravi were analyzed by the Punjab Irrigation Department and consequently Dr.M.R.Goyal, the then Consultant of PSPCL, advised to develop the project as a peak load station by installing total generation capacity of 83.25 MW. In the latest meeting of the SPTC held on Jan.24, 2012 at Chandigarh, it was decided that economic viability of the project at the prevailing prices/rates may be reviewed by the Superintending Engineer (S.E.) Project Cirle, Irrigation Branch Chandigarh and the incremental cost study may also be conducted for the additional power capacity planned for the project.
The S.E. Project Circle revised the DPR for the 55.5 MW proposal to reflect the existing price levels. The cost of the project has been revised approximately Rs. 869 Cr. at April. 2010 price level. The plant load factor of the project works out of 12.2% with annual anticipated generation of 5835 M.U.
In view of comments endorsed vide no.268-69/SKHHEP/PP-II dated 3.12.2012, the S.E. Project Circle has now submitted the incremental cost studies which estimate the additional cost of putting up an additional unit at each Power House. In the new proposal, the capacity of the project is as under:-
Power House No.I = 3×10.5 = 31.5MW
Power House No.II = 3×10.5 = 31.5MW
Power House No.III = 3×6.75 = 20.25MW
Total = 83.25MW
The costing studies conducted by SE, Project Circle seem to be in order. For creation of additional power capacity of 27.75 MW, incremental cost of Rs. 240 crore has been worked out i.e. 8.65 crore per MW and 8.94 million units per annum. This gives a very low plant load factor (PLF) of 3.7% which makes the proposal untenable. The project cannot be deemed to be attractive on economic considerations as recorded in letter no. 2803-05/Planning dated 14.11.2014 of CE/Planning, PID, Chandigarh.