MP proposes mega power plant
SASAN IN Sidhi district is one of the five sites where the Government of India has proposed to set up 4000- mega watt thermal power plant at a cost of Rs 15000 crore each. This will be the biggest power plant in MP and the State Government is likely to bid for all the power to be generated from the plant to reduce the demand-supply gap instead of asking for equity participation.india Updated: Jan 22, 2006 23:30 IST
SASAN IN Sidhi district is one of the five sites where the Government of India has proposed to set up 4000- mega watt thermal power plant at a cost of Rs 15000 crore each. This will be the biggest power plant in MP and the State Government is likely to bid for all the power to be generated from the plant to reduce the demand-supply gap instead of asking for equity participation.
The Union Government, which is likely to offer tax break and ensure an adequate supply of coal for all the five thermal power plant projects, plans to invite private sector players for execution of these projects.
Corporate giants such as Reliance Energy, Essar, Sterlite Group are said to be interested in these projects. Global companies may also be allowed to take part in the competitive tariff-based bidding process for the projects.
In a recent high- level meeting at New Delhi, the Government of India asked the Power Finance Corporation to invite Expression of Interest for setting up five mega power projects in various parts of the country.
The other four proposed sites are Akaltara in Chhattisgarh, Mundra in Gujarat, Karvar in Karnataka and Ratnagiri in Maharashtra, sources said.
The Power Ministry and Power Finance Corporation (PFC) will hold dialogue next week with energy secretaries and utility chiefs from Maharashtra, Karnataka, Madhya Pradesh, Chhatisgarh and Gujarat to sort out issues for speedy implementation of the mega projects.
They would also hold talks with states interested in drawing power from the upcoming projects and discuss various issues relating to power purchase agreement.
The PFC, the nodal agency, would set up five Special Purpose Vehicle (SPV) companies as its subsidiaries for each power plant.
The companies would work independently to get all the necessary approvals. Later, these would be transferred to potential investors by the end of 2006. Senior Energy department officers told Hindustan Times that the Union Coal Ministry has already given in-principle clearance for fuel linkages for the two pithead plants in Madhya Pradesh and Chhattisgarh.
The bidding process for these projects is likely to be based on the least first year tariff quoted. The bids for pre-qualification are likely to be invited by March end. The final bids of investors would be evaluated by senior officials of PFC and CEA after which the SPVs would be transferred to private players on the basis of tariff quoted by them, said a senior officer of the department.