Centre to allot coal block for power generation: Minister

Puducherry,Aug 13(UNI) Based on a representation from the Puducherry Government, the Union Government would allot a coal block at Naini in Orissa to the Union Territory for power generation, Minister for Industries, V Vaithilingam said here today.

Talking to newspersons here, he said the scheme to generate 600 to 700 MW of power would be implemented at an estimated cost of Rs 7500 crore.

Mr Vaithilingam said the J R Power in Vazhudavur, Tamil Nadu, would execute it under the public-private participation and the Puducherry Government would only be the licence holder, as they need not invest money in the project. The administration, in addition to the power, would get a Royalty of Rs 20 crore an year, he added.

The minister said the Puducherry administration had applied for a loan of Rs 150 crore for power distribution and Rs 100 crore for power transmission to the Rural Electrical Finance Corporation, New Delhi.

Officials from the Corporation had already visited Puducherry and held discussions with both the Chief Minister N Rangasami and himself and assured that the Government would soon be getting the loan.

Mr Vaithilingam said Reliance and the Gujarat Government would set-up a gas-based power plant each in Yanam region of the Union Territory at an estimated cost of Rs 2500 crore to generate 500 MW power.

The minister said the present 4000 MW power requirement of Puducherry would be met by purchasing power from Neyveli Lignite Corporation(NLC), Tamil Nadu Government and the Central Power Grid.

UNI