Jindals to set up 1,000 Mw unit

Photo film maker to set up Rs 6,000- cr power plant in Madhya Pradesh

Jindal Photo Ltd (JPL), a flagship company of the B C Jindal group, has proposed to set up a 1,000 Mw power plant in the Sidhi district of Madhya Pradesh. The company, which is primarily in the photo film business, has decided to diversify into power.

According to government sources, the company has identified a location called Sidhikhurd in the Sidhi district for the project, which it expects to complete by 2009, and has sought government assistance on land acquisition (1,600 acres).

"This will be a thermal power plant and will come up in the vicinity of the Singraulli (Sidhi district) mining area operated by Northern Coalfields Ltd (NCL). The firm has asked the government for coal from NCL and water at 7,000 million cubic feet per hour. The proposed site is near the Gobaiya river," an official source said.

The project will come up in stages and the investment will be around Rs 6,000 crore, according to highly-placed sources. "The firm has sought in-principle approval for setting up the power project and the government has asked district collectors to look into the land allocation issues," said a source.

The company, in a letter written to the state government official, has said, "We have made progress on water allocation and coal linkage."

JPL would promote a company for the purpose, said a source, adding, "the feasibility report will be completed soon" and "they (JPL) are in the final stages of selecting an agency to conduct an environment assessment".

After its initial failure to attract private investment in power, the government is focusing on public sector projects. In a recent statement, Chief Minister Shivraj Singh Chauhan said at least 560 Mw would be added to Madhya Pradesh's generating capacity by September.

"The government's target is to synchronise a 500 Mw unit of the Sanjay Gandhi Thermal power project, Birsinghpur; two 20 Mw units of the Madikheda project; and a number of 10 Mw units at Jhinna of the Bansagar hydroelectric project by July-August," Chauhan said in his statement recently.

The target is to start two units of 710 Mw of the Sanjay Gandhi thermal project and the Amarkantak Thermal Unit, Chachai, by September 2006 and February 2007, respectively. Bharat Heavy Electricals Ltd (BHEL) was constructing the units on a turnkey basis, said a government spokesperson.

Madhya Pradesh is still facing a tough time in terms of power supply, particularly to rural areas. High power tariffs and poor supply have put the development of the state in jeopardy, with power shortage touching 2,000 Mw during peak hours, resulting in power cuts of 10-12 hours.