No collateral securities for private power projects: Shinde

Panaji, June 3 (UNI) Union Minister for Power Sushilkumar Shinde today asserted that neither the Centre nor the States would extend collateral security to any of the private power projects in future in view of the Enron Corporation imbroglio for the erstwhile Dhabol power plant.

''The private plants have to open escrow account or open access system for starting their projects in future in view of the bad experience India had with the Enron,'' Mr Shinde said.

Interacting with mediapersons after dedicating to the people of Goa, the state-of-the-art Goa State Load Dispatch Centre and Rs 300 crore worth projects executed under the Accelerated Power Development and Reforms Programme here this evening, the Minister said India had cleared all its dues to the Enron as per its committment.

''India will not keep anybody's money. From now on, we have accepted the open access system for funds and discontinued the provision of offering collateral security to private power projects that ensure cheaper, cleaner and uninterrupted power,'' the Minister said.

The Indian enginers, he said, had advanced the synchronisation of the Ratnagiri Private Power Corporation Limited, which was erstwhile Dhabol power project in Maharashtra, to April 28 successfully to meet a part of the 4500 mw shortage of Maharashtra.

Joining hands with the NTPC, GAIL and some banks in Maharashtra resulted in the operationalisation of the RPPL much before schedule, he said.

Referring to seven Ultra Mega Power Projects proposed to add 28,000 MW capacity addition during the 11th five year plan, Mr Shinde said the project proposals would come to a final stage by January 2007 when the final bidders could take possession of the papers inclusive of all clearances along with power purchase agreement.

Right away, road shows for the projects were underway in different countries including the US and Europe besides China while the ''Shell company'', exclusively formed for giving shape to the projects, was grappling with the issue of land acquisition and provision of infrastructure including water, coal linkage and environment clearances.

The country, he said, was running short of one lakh MW of power as against 1.25 lakh MW existing capacity at the current lower 600 kv hour per capita consumption as against 1900 kv hours in China and 22,000 units in the US.

The projects now under completion by the end of the current 10th five year plan would contribute 36,000 MW to the existing capacity.

The new Ultra Mega thermal projects had to be grounded before the end of the 11th plan period to meet the surging demand.

MORE UNI BM MAZ PR RK2257