Patna, Feb 14 (UNI) The Bihar State Electricity Board(BSEB) and National Thermal Power Corporation(NTPC) today inked a Memorandum of Understanding (MOU) for setting up a new company to establish a 1980 MW thermal power plant at Nabinagar in Aurangabad district by 2012.
NTPC Chairman-cum-Managing Director T Sankaralingam signed the MoU on behalf of the public sector power giant, while BSEB Chairman Swapan Mukherjee did so for the state electricity board.
Chief Minister Nitish Kumar, state Energy Minister Bijendra Prasad Yadav and senior officials of both concerns were present on the occasion.
Speaking to newsmen after the signing of MoU, the Chief Minister said the name of the new company was yet to be finalised, though a number of suggestion had already made by himself and others.
He said Bihar was passing through a severe power crisis and the Nabinagar project would help change the entire scenario.
'' The power crisis with the daily availability of only about 350 MW of electricity, could not be solved overnight, '' the Chief Minister said.
Since it took considerable time to establish a power plant he hoped the power generation from the proposed Nabinagar plant would commence in about four years time.
He said both NTPC and BSEB would enjoy 30 per cent stake in new company, and the remaining 70 per cent capital would be raised from the market.
Both companies would initially invest Rs 1350 crore each, he said.
The Chief Minister said 75 per cent of the generated power at the proposed Nabinagar project would be allotted to Bihar, while the remaining 25 per cent would go the proposed joint venture company foe selling these to outsiders.
He said Bihar would also get its share from the remaining 25 per cent.
Asked about the Kanti and Barauni thermal power plants, Mr Kumar said the NTPC had also been assigned to rejuvenate both units.
'' I have also requested the Centre to increase its daily quota for Bihar from the present 1170 MW to 1500 MW, '' Mr Kumar said.
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