Mah Govt signs MoU with PFC, REC to generate 2000 MW power

Mumbai, June 20 (UNI) To tide over the 4,000 megawatt of power deficit in the state, the Maharashtra government today signed a Memorandum of Understanding (MoU) with the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to generatre 2,000 MW of power.

The MoU was signed for the extension of Navin Parali, Paras, Khaparkehda and Bhusaval power projects, the work on which will start within two months and the projects will become operational between 2008-10. It would require Rs 8,609 crore of investment.

It was signed by PFC's senior official Dr V K Garag, REC's CEO Anilkumar Lakhina and Ajay Mehta of Maharashtra Generation Company (Mahagenco) on behalf of the state government.

According to the agreement, in the first phase four of the nine projects of 2000 MW would be started. Eighty per cent of the required capital would be generated from the financial institutions, while the remaining 20 per cent will be shared by the state government.

''These efforts will solve the power shortage faced by the state,'' Chief Minister Vilasrao Deshmukh said.

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