Karnataka - Bangalore

State, NTPC to sign MoU for 2,000 MW project

— Photo: Sampath Kumar G.P.

POWER MEETING: Union Minister of State for Commerce and Power Jairam Ramesh (left), Chief Minister B.S. Yeddyurappa, Energy Minister K.S. Eshwarappa and Home Minister V.S. Acharya at a meeting in Bangalore on Sunday.

BANGALORE: The State Government and National Thermal Power Corporation (NTPC) have decided to set up a 2,000 MW thermal power project on a joint venture.

Both the State Government and NTPC will sign the Memorandum of Understanding in a month to set up the power plant at an estimated cost of Rs. 10,000 crore. The State and NTPC would share the power on ratio of 50:50, Union Minister for Power Jairam Ramesh told presspersons after a high-level meeting with Chief Minister B.S. Yeddyurappa and Minister for Energy K.S. Eshwarappa here on Sunday.

Mr. Ramesh said that unlike in other States, Karnataka did not have any Central power entity. The MoU will be signed after the State Cabinet cleared the proposal on the location and the facilities to be provided to set up the plant, he said. The State Government has decided to set up 4,000 MW ultra mega thermal power project at Kudagi in Bijapur district. But the Union Government’s coal policy allows ultra mega power projects to be established either near a port or near coal mines. The project at Kudagi would not be considered as ultra mega power project.

He has written to Union Finance Minister P. Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia to provide financial incentives to the project that were offered to the ultra mega power project. The Union Government does not offer financial incentives to non-ultra mega power projects. “The Finance Minister will consider the proposal; let us wait and see,” he said.

This means, the 4,000 MW ultra mega thermal power project at Tadadi village, near Karwar town, in Uttara Kannada district will not be implemented. The project at Tadari is likely to be dropped due to environmental reasons.

The State will implement a green field project through competitive bidding by March 2010. As much as 4,000 acres of land was available at Kudagi in Bijapur district.

Water was also available since the Alamatti Dam was located nearby. Kudigi is 350 km from Goa, the nearest port. The country’s first ultra mega power project was established in Gujarat.

About reduced allocation to the State from the Central grid, he said the State has been allocated 1,558 MW but it has been supplied with 1,000 MW as nuclear and gas-based power stations have not been functioning up to their full capacity. The State has sought 50 MW from the Central grid.

“If there is power to spare, the Union Government will allocate it to the State,” Mr. Ramesh said and ruled out any politics in allocation of power to States.

The power generation from the Bellary Thermal Power Station (BTPS) has been delayed due to various reasons. The BTPS would generate 300 MW from November 24 and 500 MW from the end of December.

The State Government and the Bharat Heavy Electrical Limited (BHEL) will sign an agreement for implementing three more power projects at Yeramaras (1,600 MW), Bellary (500 MW) and Yedlapur (800 MW).

Home Minister V.S. Acharya, Chief Secretary Sudhakara Rao and Energy Department Principal Secretary K. Jairaj attended the meeting.

© Copyright 2000 - 2009 The Hindu