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Sunday, Aug 10, 2008
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Another attempt to revive power project

Special Correspondent

CHENNAI: The Centre is engaged in one more attempt to revive the 1,150-megawatt (MW) Cauvery Hydro Power Project (CHPP).

Stating this, Union Minister of State for Power and Commerce and Industry Jairam Ramesh, who emerged from nearly an hour-long meeting with Chief Minister M. Karunanidhi at the Secretariat on Saturday, told journalists that the project envisaged setting up four hydro power plants at Shivasamudram (270 MW) and Mekadatu (400 MW) in Karnataka and Rasimanal (360 MW) and Hogenakkal (120 MW) in Tamil Nadu.

The National Hydro Power Corporation (NHPC) would develop the plants and the power generated would be shared by the two States according to a formula worked out by the Centre. For project execution, the States and the NHPC had to sign a tripartite agreement.

A couple of days ago, Mr. Ramesh met Karnataka Chief Minister B.S. Yeddyurappa in Bangalore and discussed the subject.

Reiterating that “cheap power” would be available to the two southern States on completion of the project, Mr. Ramesh said it would cost only Rs.2.5 to Rs.3 a unit.

He pointed out that the States were buying power at a rate of Rs.7.5 to Rs.8 a unit.

He conceded that the project had been lying in cold storage. “It is like a body in the intensive care [unit].” The NHPC had closed down its offices in Bangalore and Chennai, Mr. Ramesh said, recalling that the project was mooted about 10 years ago, when P.R. Kumaramangalam was Union Power Minister and he (Mr. Ramesh), Deputy Chairman of the Karnataka State Planning Board.

When pointed out that Karnataka had reservations over some aspects of the project, Mr. Ramesh said Mr. Yeddyurappa had told him that he needed time to study the proposal before giving the nod for discussions. “He has not rejected it outright.”

Mr. Ramesh said five or six years ago, a draft text of the tripartite agreement was prepared and circulated among the States. Tamil Nadu wanted the NHPC to execute the project and had approved the agreement text.

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