Energy majors eye Karnataka

Leading energy majors Tata Power, Reliance Energy Ltd, National Thermal Power Corporation (NTPC) and GMR Power have shown interest in setting up three coal-based power projects of 1,000 Mw capacity each in Karnataka.

The state had invited expressions of interest from large players to set up thermal power projects in Chamalapura in Mysore district, Ghataprabha in Belgaum district and Jewargi in Gulbarga district.

Twenty nine firms have expressed interest in participating in the projects on a build-own-operate (BOO) basis, according to sources in the State Power Procurement Co-ordination Centre (SPPCC).

"We have gone through the proposals. We have consulted some of them. We are in the process of seeking finals bids from short-listed companies like Reliance Energy, Tata Power and six more for the Chamalapura Thermal Power project, which will be finalised first. We will announce the winner of the bids in three months," the sources stated.

The government has issued the preliminary notification for land acquisition (3,000 acres) in Chamalapura. "We expect an investment of Rs 5,500 crore for this project. Coal procurement will be the responsibility of the company selected to implement the project. The bids for the remaining two projects will be finalised in six months," they said.

Karnataka will float a special purpose vehicle (SPV) to monitor the implementation of the three projects. Other companies, which have shown interest in the projects, include Lanco Group, Jindal Power, Orissa Power Corporation, Torrent Power and Nagarjuna Fertilizers and Chemicals.

This is for the first time that the state has sought the participation of large players in such a big way in power production. Karnataka does not have a track record of private participation in large power projects in such a big way.

At present, there are two private power projects in operation in Karnataka while the third is being commissioned. GMR Power is operating a 220Mw barge-mounted power plant near Tannirbavi off the Mangalore coast while Jindal Power is producing another 220 Mw at Toranagallu in Bellary district.

The third power project (1,015 Mw) is being implemented by the Nagarjuna Power Corporation, promoted by Lanco Group and Nagarjuna Fertilizers and Chemicals, in Udupi district.