Date:09/09/2008 URL: http://www.thehindu.com/2008/09/09/stories/2008090950380100.htm
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Karnataka, Chhattisgarh sign MoU for trendsetter-project

B.S. Satish Kumar

The power plant will help the State save coal-transporting cost



TRAILBLAZING: Chhattisgarh Chief Minister Raman Singh (left) welcoming Karnataka Chief Minister B.S. Yeddyurappa in Raipur on Monday. Energy Minister K.S. Eshwarappa is at right.

RAIPUR: In a first for the country’s power sector, Karnataka on Monday entered into a memorandum of understanding with Chhattisgarh for implementing the first phase (1,200 MW) of a pithead power plant with a capacity of 2,000 MW in this mineral-rich State.

A trendsetter-project, the power plant will help Karnataka save expenses on transporting coal from Chhattisgarh.

The plant is being set up near a coalmine.

The cost of generating a unit of power will be reduced by about Rs. 1.50 now. Power generated in this plant will be transmitted to Karnataka through the power lines of the Power Grid Corporation of India Limited.

Reciprocating the gesture of the Chhattisgarh Government, Karnataka has now decided to convince its educational institutions to set up medical and engineering colleges in Chhattisgarh. A decision in this connection was taken by Chief Minister B.S. Yeddyurappa after consultations with his Chhattisgarh counterpart Raman Singh soon after the signing of the memorandum of understanding.

Mr. Yeddyurappa told presspersons that he would consult educational institutions in Karnataka and persuade them to set up colleges offering professional courses in Chhattisgarh.

He also assured Chhattisgarh of extending cooperation in information technology, biotechnology, technical and medical education and silk technology. Chhattisgarh has identified the area for setting up the first phase of the plant which would require about 1,000 acres of land.

Of this, nearly 60 per cent is said to be private land. Mr. Yeddyurappa offered to provide the “best compensation” to the land losers.

After signing the memorandum of understanding, Karnataka’s Principal Secretary to Energy Department K. Jairaj said that civil work of the project would begin within six months from now.

Work on the first phase with two generating units with a capacity of 600 MW each would be completed by October 2,012.

The implementation of the second phase of the project with a generating unit of 800 MW will be taken up after the completion of work on the first phase.

The project is being implemented by Karnataka Power Corporation Limited (KPCL). The first phase of the project will get “mega project” status as its capacity is more than 1,000 MW.

Dr. Raman Singh hoped that other States would follow the example of such cooperation within the federal structure. It could come in any field of development, he said.

KPCL Managing Director S.M. Jamdar said a detailed project report will be prepared in two months by the consultants appointed by the corporation.

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