Jharkhand could have been a surplus state in power sector if a section of locals had not resisted setting up of two major power projects by the state-owned National Hydroelectric Power Corporation (NHPC) and the National Thermal Power Corporation (NTPC).
However, Jharkhand State Electricity Board (JSEB) now intends to attain a power surplus status within next five years.
NHPC has struggled for over two decades to set up one hydel power plant — to the extent of 710 MW in the first stage and 2,200 MW in the second stage — harnessing water from South Koel river and its tributary stream, North Karo, in Khunt and Torpa districts of the state.
NHPC’s Koel-Karo Hydroelectric Project was cleared by the Public Investment Board (PIB) when the project was part of Bihar, way back in 1981. The estimated cost of the project was Rs 391.83 crore.
However, in 1987, the Centre sanctioned revised project estimate according to December, 1986, price level of Rs 929.52 crore.
Land owners led by some local tribal groups opposed the hydel power project, apprehending inundation of several hundred villages along the agricultural land from the dams of Suburnrekha river.
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The agitation followed a police firing in February, 2001, on a mob at the project site. Six people, including two policemen, had died in this incident.
Finally, the project was abandoned by NHPC with possession of 239 acres of land. Initially, 169 displaced people and their nominees were employed at the project site. When the project was abandoned, they were absorbed in other NHPC projects.
The other central government power utility, on hold, is an old project since undivided Bihar. The 1,080 MW capacity super-thermal power project was to be set up at Tandwa, now part of Chatra district of Jharkhand.
Before creation of Jharkhand by bifurcating Bihar on November 15, 2000, cost of the project was Rs 8,000 crore and to execute the project, Bihar government had arranged a debt commitment of Rs 1,500 crore from Japan Bank for International Cooperation.
Recently, a deadlock persisted in the proposed super- thermal power project after the state-run Coal India Limited (CIL) raised objections on NTPC’s project, pointing out that if the power project was set up in Tandwa area it would block excavation of six billion tonnes of coal of CIL.
The foundation stone of the proposed super-thermal power project was laid way back in 1999 (before creation of Jharkhand) by the then Prime Minister Atal Behari Vajpayee. When Jharkhand was carved, its government initiated land acquisition process for the project.
An agitation had started against land acquisition and the land owners refused to part with their land. Agitated villagers even took away foundation stone from the site. In September, 2001 , the then Union power minister Suresh Prabhu laid another foundation stone at Tandwa for setting up an operation-planning building to boost the mega power project.
According to CAG’s latest report the average electricity requirement in Jharkhand in 2005-06 was 5,344 million units (MUs) of which only 2,065 MUs were generated leaving a shortfall of 3,279 MUs, which works out to 61.36 per cent of the requirement. Similarly, the requirement in 2009-10 was 6,833 MUs against which the energy actually available from generation was 2,095 MUs, the shortfall being 3,888 MUs.
Following bifurcation of Bihar in 2000, the new Jharkhand state inherited 1,390 MW installed capacity of power from undivided Bihar in the form of two thermal power stations – Patratu with capacity of 840 MW and Tenughat with 420 MW capacity. In addition, Jharkhand received the Sikidiri hydel power station of 130 MW capacity.
Thus the total installed power generation capacity in the state was 1,390 MW in 2005-06, which remained the same till date, as no state-run power projects have come up.
NTPC had a proposal to float a joint venture company with the JSEB to put up a thermal power plant of 1,320 MW capacity on the vacant plot of Patratu Thermal Power Station.
When contacted, JSEB chairman S N Verma told Business Standard that the proposal has recently been scrapped by JSEB as the power utility (JSEB) will soon float tenders for inviting bids both from public and private sectors for establishing three thermal power projects in the districts of Ramgarh, Latehar and Dumka with total installed capacity of 1,320 MW. These measures are among several steps being taken to make Jharkhand a power surplus state.
Verma who had been in a senior position in NHPC, joined JSEB as its fifteenth chairman in June last year. He said JSEB will provide land, water and captive coal mines to the prospective bidders of the three power projects.
JSEB chief said that the present severe power situation was due to bad distribution system that has existed for long. After joining the board six months ago, he has taken several steps to strengthen the distribution system and minimize load-shedding.
Verma said, before his joining JSEB, the transmission loss had been 41 per cent. It has now come down to 30 per cent. The transmission loss was primarily due to power thefts — for which raids to premises of industrial and domestic consumers were made. JSEB had lodged about 2,000 FIRs with the police stations concerned.
This stringent measure has reduced power thefts and has helped the board to increase its revenue from consumers to the extent of Rs 270 crore per month from and earlier Rs 150 crore, monthly, he added.
The chairman said that he has taken disciplinary action against some senior executives, including a general manager, for their misdeeds.