The Hindu : National : Stand-off between Chhattisgarh government and NTPC resolved

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Monday, Apr 28, 2008
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Stand-off between Chhattisgarh government and NTPC resolved

Sujay Mehdudia

NEW DELHI: The efforts of the Minister of State for Power Jairam Ramesh have paid off. The stand-off between the Chhattisgarh government and the National Thermal Power Corporation (NTPC) on the Rs. 12,000-crore power project has ‘ended’ with the State government agreeing to release water to the plant that would help kickstart the 500 MW unit.

“I have been informed by the Chhattisgarh government and NTPC that a go-ahead had been given to release water for the plant initially for three months. This will help in getting the plant commissioned immediately leading to generation of 500 MW of power that would be added to the grid and come as a big relief to the western region States in the current summer season,” Mr. Ramesh said.

Water is heated and turned into steam for power generation in thermal plants. It is also used for washing coal. Failure to release water had led to a stand off between NTPC and the Chhattisgarh government for almost a year with little effort being made by the power ministry to settle the issue.

However, Mr. Ramesh took the initiative and held talks with Chhattisgarh Chief Minister Raman Singh last week and sought an assurance for supply of water.

“Mr. Singh was very positive and we have assured them that the NTPC would fulfil all the promises it made to the local population for training and recruitment in the project at various stages,” Mr. Ramesh stated.

The project will have a capacity of 3,000 MW when fully commissioned. NTPC was to commission the first 500 MW unit in October 2007 but had to put it on hold following the Chhattisgarh government’s decision to revoke the sanction of water for the plant. The schedule then went haywire and led to a rise of Rs. 19 crore a month in capital cost on account of interest for the construction period.

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