Cabinet approves shift of power plant to Haryana
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Cabinet approves shift of power plant to Haryana

In the new power plant deal in Haryana, Delhi is getting 750 MW of power while the remaining is going to Haryana.

india Updated: Oct 16, 2006 21:07 IST

After failing to secure favourable terms in BJP-ruled Chhattisgarh for the setting up of a power plant, the Delhi Cabinet on Monday approved the shift of the power plant to the Congress-ruled Haryana.

Talking to reporters after the Cabinet decision, Chief Minister Sheila Dikshit said, "It would be a joint venture company for commissioning a power plant in Jhajjar district of Haryana for generating 1500 MW of power. The NTPC would have 51 per cent equity and both Delhi and Haryana would have 24.5 per cent equity each."

Power Minister Haroon Yusuf said Delhi would get a supply of 750 MW of power from this plant while the remaining 750 MW would go to Haryana. "This would help us meet the growing power demand in Delhi," Yusuf said.

According to the details worked out, the plant would be owned and constructed by NTPC and would have full management control. The estimated expenditure for setting up of the plant is Rs 6,750 crore.

This means that per MW of power production would cost Rs 4.5 crore Officials said a MoU could not be signed with Chhatisgarh due to differences on several counts but there was no problem with Haryana and the MoU was signed on August 24.

In its offer letter to both the Delhi and Haryana governments, the NTPC has indicated that it would take 64 months for synchronisation of both the units and commercial operation date would be 70 months. This means thatpower from the Jhajjar plant would not be available for the Commonwealth Wealth Games, 2010.

In its note to the government, the Planning department stressed on the importance of the project and said that as per projections of different agencies, the maximum power demand of Delhi will grow to 6961 MW by 2012 from the demand of 3700 MW at present.

The Finance Department said it would have been ideal if power generation were located in Delhi so that it is not subjected to the vagaries of the grid, wheeling of power, overdrawing problems etc. "This location is the second best option," the Finance Department note added.

It said the risks to Delhi have been minimised as the power plant would be owned and managed by NTPC and arrangements are being worked out under the auspices of the Ministry of Power and Haryana government will not have the power of controlling its functioning.

First Published: Oct 16, 2006 21:07 IST