The Punjab government today signed a Memorandum of Understanding with National Thermal Power Corporation (NTPC) for setting up a 2640 Mw Coal based Thermal Power Project at Gidderbaha with an estimated outlay of Rs 15,000 crore.
This will be the biggest thermal power project in Punjab in terms of capacity, said a spokesman in a statement issued here.
The MoU was signed by Power (Punjab) Principal Secretary Arun Goel and NTPC Director I J Kapoor.
The Punjab government has agreed to facilitate acquisition of land, allocation of water and conveyed in-principle clearance for about 2,316 acres of land and 125 cusecs of water, he said.
The state has already issued notification under section 4 of Land Acquisition Act for acquiring 2,316 acres of the land for the project.
The power plant will consist of 4 units of 660 Mw and each will be funded by NTPC. At least 50 per cent of the power from the plant shall be allocated to Punjab.
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NTPC has sought long-term coal linkage from Ministry of Coal and Punjab government will extend cooperation in obtaining the coal linkage for the project, he said.
Punjab State Power Corporation (PSPCL) shall provide all the reports, including preparation of feasibility report to NTPC, and the cost on all such reports shall be reimbursed by NTPC.
PSPCL shall enter into a Power Purchase Agreement with NTPC for purchase of power allocated from the proposed project. The tariff for sale of power shall be as determined by Central Electricity Regulatory Commission, he added.