Orissa signs MoU for ten power plants

Bhubaneswar, Sep 26 (UNI) After signing 43 MoUs for setting up of Steel and Aluminium plants in the state, the Orissa government today signed as many as ten MoUs with the Independent Power Producers(IPP) for establishing power plants to generate 10920 MW of power at an investment of over Rs 45,000 crores.

Among the ten IPP, the Sterlite Energy Private Limited(SEL) signed the MoU for setting up of 2400 MW of power(4x600 MW) at Bhurkamund in Dhenkanal district with an investment of Rs.7481 crores while the Lanco Gropu Limited(LGL) proposed to set up a 1320 MW of power plant in Athgarh tahasil of Cuttack district at an investment of Rs 4200 crores.

Six other companies such as Bhusan Energy Limited(BEL), Calcutta Electricity Supply Corporation(CESC), Essar Power imited(EPL), Jindal Photo Limited(JPL) and Tata Power Company Limited(TPCL) would establish each 1000 MW thermal power plant.

The Monnet Ispat Energy Limited(MIEL) and KVK Neelachal Power Limited(KNPL)intended to set up each 600 MW of thermal power plant.

Speaking on the occasion, Orissa Chief Minister Naveen Patnaik said the abundant coal resources of the state which accounted for 25 per cent of the total reserves in the country, could sustain thermal generation of one lakh MW of power for nearly 100 years.

He said with the establishments of the power plants by the independent power producers,the state would be benefited by Rs.1790 crores per anum besides 2475 Mw of power.Nearly 10,000 direct employment and 20,000 indirect employment would be generated in the state,he added.

The Chief Minister said the state would set up an Environment Management Fund with the contribution from the IPP to undertake environment management plan and asked the business houses to take adequate steps to check pollution and protection of environment. Energy Minister S N Patra said the state government had designed a well structured MoU in the interest of the state as well as for the investors.

He said a nominated agency authorised by the state government would have the right to purchase up to 25 per cent of power produced by the plan as per the tariff determined by the Regulatory Commission.

This apart, the power producers would have to pay six paisa a per unit of power exported to outside the state and make available power to the state in excess of 80 per cent Plant Load Factor(PLF) at a variable cost with incentives.

All the ten IPP together would require nearly 12,990 acres of land to set up the power plants in the state.

The Reliance Energy which was supposed to sign the MoU for a 4000 MW of power plant at Hirma in Jharsugura with an investment of Rs 16,000 crores did not turn up for signing the MoU.

State Energy Minister S N Patra later clarified that the Task Force set up by the state government to sort out the pending arrears of the Reliance Energy would look into the matter after which the MoU would be signed with the company.

As per the MoU signed today, the Bhusan Energy Limited would set up1000 MW coal fired thermal power project in Angul district which would be expanded to 2000MW with a total investment of Rs 8483 crore. The company had identified a site close to Brahmini river. The Calcutta Electricity Supply Corporation would establish 2x500 MW coal fired power project at Neulopoi village in Dhenkanal district by investing Rs 4042 crore. The company had also selected a site close to the Brahmini river.

The Essar Power Limited would go for a 1000 MW power project at Talcher in Angul district with an investment of Rs 4602 crore, while the Jindal Photo Limited would invest Rs 4525 crore to establish 4x250 MW coal fired thermal power project at Pirasahi in Angul district.

Similarly, the Tata Power Company and the Visa Power Limited would set up each 1000 MW power plant at an investment of Rs 4346 crore and Rs 3698 crore respectively. Both companies would set up their plant in Cuttack district.

UNI