THE DELHI-BASED Kedia Power Ltd has requested the State Government to allow it to set up a coal-based 600-MW power project in Bamnia in the Jhabua district, with an anticipated total investment of Rs 2,400 crore.
The will be in a 70:30 debt-equity ratio. For this, the company has already entered into a deal with the Power Trading Corporation for purchase of power.
The company has also approached the State Government in this regard and has held some rounds of preliminary discussions. “The State can draw power from this project in accordance with their requirements through PTC,” the company said in its representation to the State Government. Sources in the Energy Department confirmed that some rounds of discussions were already held with the company.
Kedia has asked for 250 hectares (of which 145 hectares is government land) and has sought diversion of the Bamnia-Karwad road at its own expenses.
When contacted, Jhabua Collector Rajkumar Pathak admitted that the company has shown interest in setting up a power plant. “Discussions are in preliminary stage and a final decision would be taken at the Government level,” said Pathak.
The Kedia Power had a deal with the State Government in 1995 for a 360-MW gas-based power project and had secured the State Government guarantee, executed the power purchase agreement, and deposited money for land acquisition in the Jhabua district.
It had secured all permissions for the execution of the project. “Due to unavoidable reasons, the project did not take off,” said a government insider, adding, “the company has demanded permission to draw water from nearby Mahi project on royalty basis.
The project clearance board will discuss offering land and related facilities to the project, he added. In addition to road diversion, land and water, the other requests of Kedia included clearance for laying a pipeline.
Jhabua is an overwhelmingly tribal and poor district. The district has only one industrial growth centre in Meghnagar with hardly 20-25 industries.