Rupee depreciation pushes up cost of Larkana New Substation

Updated 19 Oct, 2019

Apart from the local financing, foreign exchange component (FEC) was put at Rs 3.534 billion in the original PC-I by calculating it at Rs 139.39 against one US dollar. The approved cost of the project carried the FEC of Rs 4.006 billion, which has been calculated at Rs 156.17 against one US dollar.

In July this year, project cost was recommended to be around Rs.5.921 billion by calculating the dollar-rupee party at Rs 141.16 against one dollar. However, an upward trend in dollar against local currency pushed up the cost further, surpassing the recommended cost of CDWP in July 2019. The main objective of the project is construction of 220 kV Larkana Grid Station along with associated transmission lines to meet additional load demand & voltage profile improvement of SEPCO (Sukkar Electric Power Company) area.

The scope of work includes 220 kV substation at Larkana with three 220/132kV, three 250 MVA transformers along with allied equipment and accessories. Also, a 220 kV D/C transmission line (approx. 65 km) on twin bundle Rail conductor from proposed 220 kV Larkana to 500/220/132 kV Shikarpur substation and extension at 500/220/132 kV Shikarpur substation (Two 220 kV line bays).

According to official documents, the capacity of power generation is increasing day by day. To cope with this growth and demand, additional capacity would be required annually. As a result of this, enhancement in transmission and transformation capacity of NTDC system is required. The power sector aim is to provide reliable, uninterrupted power to its consumers. Keeping in view the present loading position and increasing trend of the power demand in near future, immediate requirement has been established to enhance the capacity of the existing grid stations by addition/augmentation of 220 kV and 500 kV grid stations.

The proposed project will lead to improve voltage profile, system reliability of network and reduction in the loading of power transformers. The proposed scheme will also result in overall power system efficiency and stability to deliver adequate and quality power to the consumers of SEPCO area. According to official documents, the project would be implemented in four years and government has allocated Rs 200 million to it in the 2019-20 Public Sector Development Programme (PSDP).

Copyright Business Recorder, 2019

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