Published On:June 13 2008
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Orissa to get 3 mega thermal power projects

Bhubaneswar: The Centre will develop three mega power projects of 4000MW each in Orissa through the competitive tariff prices bidding route, the Union power ministry and the state government agreed.

Orissa had formed three shell Companies Bedbahal Thermal Power Co, Marthapur Thermal Power Co Ltd and Santarapur Thermal Power Co Ltd under the government-owned Orissa Hydro Power Corp (OHPC).

These shell Companies were formed to take advantage of the Union government's policy to allot coal blocks to state-owned shell Companies. The Union power ministry, however, had been insisting that the state should allow the Centre to take over the shell Companies and develop the projects.

The issue was discussed at a meeting between chief minister Naveen Patnaik and Union power secretary Anil Razdan.

It was decided that the Centre will develop the mega power projects which are separate from the ultra mega power projects (UMPPs) and share half the power generated with the state at the bidding price. The state will provide the land, water, infrastructure and administrative support.

The state's energy minister, SN Patro, said the three projects will bring in an investment of Rs 50,000 crore.

These projects are not to be confused with the Ultra Mega Power Projects (UMPP) allotted to the state.

'We are close to start the work on the Orissa UMPP,' the union power secretary told reporters.

He said the state has identified land for the project in Sundergarh district. Once the Central Electricity Authority (CEA) gives its clearance, the state would start the bidding process.

For the UMPP, the state will be allocated one-third of the power at generation cost.

Razdan was here to review the progress made in implementation of the Rajiv Gandhi Grameen Vidyut Yojana (RGGVY) under the Eastern Region Power Grid.

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