Mah cabinet approves four power projects worth 2,000MW

Mumbai, May 3 (UNI) The Maharashtra cabinet today gave its approval to four new thermal power projects to generate 2,000 MW electricity over the next four years.

Briefing reporters after a weekly cabinet meeting, Chief Minister Vilasrao Deshmukh said the cabinet today gave its nod to New Parli Thermal Power Project unit two (250 MW), Paras extended thermal project unit two (250 MW), Khaparkheda extended thermal power project (500 MW) and Bhusawal extended thermal project (1,000 MW).

The projects will be set up at a cost of Rs 8,601 crore and with work would begin from July and be completed in phased manner between November, 2008, and February, 2010, he added.

The ratio of loan and capital equity would be 80:20. The loan of Rs 6,887 crore will be taken from Power Finance Corporation and Rural electrification Corporation. whose interest would be 8.5 per cent.

Mr Deshmukh said the State government will provide capital equity of Rs 1,722 crore to Mahagenco, the State-owned power generation company every year as budgetary allocation.

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