State scraps pact with Vijayaa Ferro and Power for 120 MW plant.

The state Energy department has scrapped its pact with Vijayaa Ferro and Power Private Limited for setting up of a 120 MW thermal power plant in Kalahandi district on the ground of inordinate delay in implementation of the project. The independent power producer (IPP) had signed MoU (memorandum of understanding) with the Odisha government in April 2010 for establishment of 120 (4x30) MW coal-fired power plant at a cost of Rs 550 crore.

The power producer had also entered into PPA ( power purchase agreement) with state-owned bulk power purchaser, Gridco in 2011 for selling of 12 to14 per cent power produced by it at variable cost.

BS