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June 6, 1998

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All pending power projects in Maharashtra cleared

The central power ministry team headed by Union Power Minister R Kumarmangalam today cleared all pending issues relating to new power projects in Maharashtra and also substantialy increased the exposure limit for the Maharashtra State Electricty Board from Rs 880 million to Rs 4.2 billion for 1998-1999.

Disclosing this at a press conference in Bombay, Kumaramangalam said that as a result, MSEB would receive Rs 3.32 billion more from the Power Finance Corporation this year. This included Rs 1.32 billion towards renovation and modernisation of its power generation units at Bhusawal, Koradi, Nashik, Chandrapur, Khaparkheda, Paras, and Parli.

The central team, which held a meeting in the presence of the Maharashtra Deputy Chief Minister Gopinath Mundhe, who also holds the portfolio of energy, and state Power Secretary Satish Tripathi, MSEB Chairman Ashok Basak, and other top officials concerned, also cleared all the necessary permission for three new power projects of the MSEB.

They include two units each of 420 mw at Khaparkheda, one unit of 250 mw at Parli and one unit of 330 mw at Paras. Mundhe declared that now it was all clear for these projects to take off.

Kumaramangalam also announced that the Union power ministry has agreed in principle to set up National Thermal Power Corporation. The state so far has no NTPC unit. He indicated that it would be a mega power project located on coal pit-head. However the site of the project was yet to be determined, he added.

The Union power miniser also announced the sanctioning of additional 2,000,000 tonnes of coal for the new MSEB thermal power projects at Parli and Paras. Besides, it had also been agreed to provide coal linkage to Khaparkheda units three and four of 420 mw each capacity.

He said that all problems relating to the counterguarantee for the fast-track 1,082 mw capacity power project in Vidarbha have been sorted out and it was expected to take up for financial closure within next three months. Another fast-track project proposed at Patalganga by Reliance Industries was also ready to take up financial closure within a couple of week.

The Central Electrcity Authority would review the installed capacity issue of the project as well soon. He said it was a simple dispute arising out of classification issue. While the company has been claiming theat the generator capacity was 440 mw whereas the state government had been contesting it on the ground that the sanctioned installed capacity weas 410 mw. The claim of the sponsor-company was based on the tag description on the machinery.

Kumaramangalam said that Maharashtra has also agreed to consider purchase of power from central power projects of Kawas and Gandhar in view of their agreeing to use liquified natural gas which would reduce the price of power. The power ministry had also agreed to look into the matter of naphtha supply for seven new independent private power project proposals received from Maharashtra, he said.

Munde pointed out that these proposals, for which the fuel-linkage had been sought, were those received during the Advantage Maharashtra seminar held last year for attracting foreign investment in infrastructure sector in the state.

The railway ministry officials in the team also agreed that the 160 km train link between Mudkhed and Adilabad in Marathwada would be completed within this year.

UNI

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