Business

MoUs signed for 10 power plants

Prafulla Das

Orissa Government takes a giant step

BHUBANESWAR: Orissa on Tuesday took a giant step forward to become the country's powerhouse with the State Government signing memoranda of understanding with various companies for setting up of ten thermal power plants.

The ten companies will set up the power plants with a total investment of over Rs. 45,000 crore to produce 10,920 MW of power, the Chief Minister, Naveen Patnaik, said at the MoU signing ceremony held at the State Secretariat.

The companies that signed the agreement to set up coal-based power plants include Tata Power Company, Visa Power, Monnet Ispat and Energy, Lanco Group, KVK Nilachal Power, Calcutta Electric Supply Corporation, Essar Power, Jindal Photo, Bhusan Energy, and Sterlite Energy Pvt. Ltd.

The Government, however, did not sign the memorandum of understanding with Reliance Energy as had been decided earlier. "The agreement with the company will be signed at a later date," State Energy Minister, Suryanarayan Patro, said.

According to the MoUs signed, Tata Power will set up a 1,000 MW coal fired plant in Cuttack district at a cost of Rs. 4,348 crore. Visa Power also will set up a 1,000 MW power plant in Cuttack district at a cost of Rs. 3,698 crore. Monnet Ispat and Energy will set up a 600 MW plant in Angul district with an investment of Rs. 2,852 crore.

The Chief Minister said the State Government would have the right to purchase up to 25 per cent of power sent out from these plants as per the tariff to be determined by the Orissa Electricity Regulatory Commission.

Mr. Patnaik said an annual contribution at the rate of six paise per unit of the energy sent out from these plants, but sold in the State, would be made by the developers towards the Environment Management Fund that the State government was going to set up shortly.

The ten power projects would provide direct employment to 10,000 persons and indirect employment to another 20,000, he said.

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