CLP to execute project with Indian partner

By Our Special Correspondent

BANGALORE, JAN. 22. The China Light Power Company (CLP) today informed the Karnataka Government its resolve to execute the much-delayed 1000 MW thermal power project near Mangalore by involving an Indian partner.

The CLP Business Development Director, Mr. Tom Watters, had an hour-long meeting with the Chief Minister, Mr. S.M.Krishna. Cogentrix and CLP had floated the MPC as a subsidiary to execute the mega thermal project near Nandikur in the Dakshina Kannada District in 1995.

Mr. Watters, who was accompanied by the MPC Project Development Director, Mr. Siddarth Mathur, said the company was in the process of identifying an Indian partner.

Mr. Krishna, emerging from the meeting, said the CLP and the MPC had communicated that they would be executing the project with an Indian partner and had accepted the conditions set by the Government and also the Centre's new guidelines. The MPC Managing Director, Mr. Ron Somers, was not present.

Mr. Krishna said he had explained to the CLP and the MPC representatives that because of shift in stance of the Centre, there was a change in the format in which the project had to be executed, and the PPA had to be reconsidered.

Mr. Krishna said the authorities of the Karnataka Power Transmission Corporation (KPTCL) and representatives of the CLP and the MPC would be holding consultations with the expert committee headed by Mr. Deepak Parekh, set up by the State Government to study the project, at its meeting scheduled on January 28.

The Chief Minister said he had asked the CLP to decide on the project by February and commence the work.

Mr. Watters, responding to queries from presspersons, said the Chief Minister had explained to them the situation clearly. He said his company was hopeful of finding an Indian partner quickly and added the quantum of stakes to be offered to the Indian firm was yet to be finalised. He said the CLP had agreed for minor amendments to the PPA and claimed the power produced by it using coal would be the lowest among others.

He said the work was likely to commence in six months and power would be generated in about four years. The company had accepted all conditions of the Government.

The CLP and the MPC presented a note on the project to the Chief Minister during the discussion, in which it said it would operationalise a ``world class'' coal plant, which would be more thermally-efficient and produce cheaper electricity than a gas- based plant, as the State was toying with idea of encouraging LNG-based power plant.

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