Date:08/08/2007 URL: http://www.thehindu.com/2007/08/08/stories/2007080857062000.htm

Business

Sasan project handed over to Reliance Power

Sujay Mehdudia

Norms will be corrected for future projects, says Shinde

Power purchase and escrow agreements signed
Seven more ultra mega projects in the pipeline

NEW DELHI: Accepting that the Power Ministry and other stakeholders had failed badly to meet the power generation targets set for the X Plan, Union Power Minister Sushil Kumar Shinde on Tuesday asserted that the ultra mega power projects would help turn the tide in the XI Plan.

“We are also closely studying the various norms and regulations governing the process of bidding and award of ultra mega power projects. Power Secretary Anil Razdan, is looking into the issue and will submit a report to the Empowered Group of Ministers soon. We will remove all the bottlenecks and fine tune the policy to ensure that other seven mega power projects do not face any such problems as had happened in case of Sasan power project,” he told The Hindu on the side lines of the handing over ceremony of the 4,000 MW Sasan Ultra Mega Power Project to Reliance Power Limited here.

Mr. Shinde said seven other ultra mega power projects were in the pipeline and hopefully they would be handed over to successful bidders soon. “The power sector and especially the ultra mega power project provide a great occasion for private developers to grab the opportunity and invest in the power sector in a big way,” he added.

Mr. Shinde said he had asked both Reliance Energy Chairman Anil Ambani and Tata group Chairman Ratan Tata to complete the Mundra and Sasan projects within the XI Plan. Mr. Ambani said Sasan would showcase the capabilities of the company in creating best of class infrastructure, revolutionise tariffs and set new benchmarks of efficiency and competitiveness in power generation.

Reliance Power had quoted a tariff of Rs. 1.196 a unit for Sasan project. The project will have six units of 660 MW each. Sasan Power, now under ownership of Reliance Power, will be responsible for developing the project at Sasan, district Sidhi in Madhya Pradesh.

Mr. Ambani and Power Finance Corporation (PFC) Chairman V. K. Garg signed the power purchase, escrow and hypothecation agreements in the presence of Mr. Shinde and Planning Commission Deputy Chairman Montek Singh Ahluwalia.