Odisha seeks more funds for pump storage projects.

Noting that coal bearing states face the adverse effect of mining, reduction in forest area, risks of environmental pollution and strain on water resources, Odisha Chief Minister Naveen Patnaik today asked the Centre to provide financial assistance for pump storage projects (PSP) from the National Clean Energy Fund.

“It is requested that financial assistance (grant) to the tune of 75 per cent, the estimated coast of each PSP, may be provided from the NCEF to bring down the cost of power from these projects in order to make the tariff affordable,” Patnaik said in his letter to Prime Minister Narendra Modi.

Patnaik further said “Once the institutional mechanism is established and in-principle clearance is accorded by the Centre, specific proposals will be submitted by the state for execution of renewable energy projects including hydro-electric projects, more particularly, the PSPs.”

The Chief Minister said that whereas the coal bearing states have to bear the brunt of negative externalities on account of setting up of the pit-headed thermal plants to cater to the power requirement of the country, some other states have the locational advantage of harnessing the renewable energy.

“It is, therefore, imperative that the coal bearing states should be assigned reasonably lower limits for Renewable Power Obligation (RPO). Besides, the renewable energy projects in the coal bearing states should be funded from the NCEF.

“Further, hydro-electric projects having installed capacity of more than 25 MW, especially the pump storage projects, may also be considered as renewable energy projects.

These projects would help tremendously in meeting the peak demand and also in balancing the Grid,” Patnaik said in the letter.

HBL