Orissa cabinet for variable cost for power projects

Bhubaneswar, Aug 4 (UNI) The Orissa government today decided that the existing Independent Power Projects(IPP) with coal block linkages in the state will provide seven per cent of their power generated by them to the state at variable cost.

The decision was taken at the Cabinet meeting presided over by Chief Minister Naveen Patnaik.

Briefing newspersons after the meeting, Chief Secretary Ajit Kumar Tripathy said the IPPs without coal linkage would have to sale five per cent of their power to the state at the variable cost which would be determined by the Orissa Electricity Regulatory Authority(OERC).

The existing provision that the power generated in excess of 80 per cent of PLF from power plant would be made available to the state at variable cost was abolished.

The Ultra Mega Power Projects(UMPP) would have to sale 50 per cent of the power generated at the plant to an agency authorised by the state government.

In addition to it the UMPP would have to spend five per cent of their profit for the peripheral development, Mr Tripathy said adding the decisions were taken on the basis of the recommendation made by the Task Force on power related issues in April 2008.

The Task Force had recommended modifications on the policy guidelines on power plants pertaining to four critical areas--IPPS who have signed the MoUs, review of IPPs who have signed Mou, policy guidelines for establishment of Ultra Mega Power Plants and for establishment of power plants by Central Public Sector Undertakings.

It was also finalised at the Cabinet meeting that the IPPs who wanted to set up power projects with coal block linkage would have to sale 14 per cent of their power and in case of power plant without coal linkage at 12 per cent to an agency authorised by the state government at variable cost.

The Central Public Sector Undertakings would give 10 per cent home state share from the plant in addition around 20 per cent share through Gadgil formula of the Union Power Ministry.

The CPSUs will not contribute six paise per unit of the energy supplied outside the state from the plant towards environment management fund.

The CPSUs would follow their own Rehabilitation and Resettlement policy which should not be inferior to the R &R policy of the state government, the Chief Secretary said.

UNI BD DP ADG RN1841