High-level meeting gives green signal to NTPC and PFC to go ahead with bidding process
The 4,000 MW plant will come up in Sundargarh district NTPC agrees to provide 1,300 MW annually to State
BHUBANESWAR: Decks have been cleared for setting up 4,000 MW ultra mega power plant in Sundargarh district with the State Government and the National Thermal Power Corporation ironing out the contentious issues on sharing of power to be generated from the proposed unit.
A high-level meeting chaired by Chief Minister Naveen Patnaik on Wednesday gave green signal to the NTPC and the Power Finance Corporation (PFC) to go ahead with the bidding process for the project, which entailed an estimated investment of Rs. 16,000 crores to Rs. 18,000 crores.
"The decision was taken only after the NTPC agreed to provide 1,300 MW power to the State from its mega power plant at nominal charges. The Grid Corporation of Orissa Limited (Gridco) will be the nominated agency to purchase power," State Energy Minister Surya Narayan Patra told reporters here.
As per the existing guidelines, any independent power producer intending to put up a plant will have to contribute six paise per unit of the energy to be sold to other States. The money earned on this account will be deposited in the Environment Management Fund. A nominated agency authorised by the State Government will have the right to purchase up to 25 per cent power sent out from the thermal power plant, as per the tariff determined by the Regulatory Commission. Since these guidelines were not extended to Central Government projects, the State sought one- third of the power to be generated from the mega project, which was agreed by the NTPC, Mr. Patra said. The Minister said while a coal bloc had been identified for the purpose, Gridco had been given permission to deposit Rs. 13 crores as caution money to purchase power from the mega unit. The project is part of the Centre's plans to set up seven coal-fired ultra mega power projects in the country for generation of 28,000 MW power. Mr. Patra said the process for setting up the plant in Orissa was expected to commence in a month.