Mah Govt relaxes conditions for erecting power plants

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Mumbai, Dec 26 (UNI) Sensing the urgency to augment power generation in the state, Maharashtra Government today relaxed the conditions set for private parties for erection of power plants.

The decision was taken at the weekly cabinet meeting, chaired by Chief Minister Vilasrao Deshmukh, here.

As per the March 28, 2005 decision of the State Government, in order to get maximum private participation in power generation, companies will be entitled to concessions and facilities to erect power plants if they fulfill certain conditions.

The conditions include the submission of a detailed project report (dpr) within six months of the announcement of the policy.

Similarly, the financial closure of the power generation plant should be submitted within a year of the announcement of the policy.

The other clause was that the project should be operationalised within five years of the announcement of the policy.

However, a review of the projects, since the announcement of the policy allowing private companies to set up power plants of 500 MW or more, revealed that none of the companies were able to fulfill the conditions to avail concessions from the Government. Hence, the Government decided to re-consider the conditions to enable private companies to expedite the process of erecting power plants.

As per the MoU signed between the Government and private companies, the time frame of operationalising the power plants is upto March 27, 2010. Except Tata Power's 500 MW plant in Trombay (Mumbai) and Jindal's plant at Jaigad in Konkan region, work orders have not been given for any other projects. Actual work has also not begun. In view of this, it is not possible to operationalise the projects by March 2010.

With today's cabinet decision, the time frame for operationalisation of the projects has been extended to September 27, 2011.

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