The proposed 1320 Mw expansion, comprising establishment of two units (unit-3 &4) of 660 Mw each, of the Orissa Power Generation Corporation’s (OPGC) Ib valley thermal power complex in Jharsuguda district will be completed by 2013.
The work on the proposed expansion is in progress, said state energy minister Atanu Sabyasachi Nayak.
The project is being implemented in partnership with AES and it will cost about Rs 7,000 crore.
The project will have a debt-equity ratio of 80:20.While the shareholders are required to contribute Rs 1400 crore, the remaining Rs 5600 crore will be raised from various financial institutions.
A major portion of the shareholders investment will come from internal accruals and the remaining money will be mobilised by the state government and the AES in the ratio of 51:49. The minister said, when the shareholders agreement was signed between the Orissa government and AES Corporation on 6 October 1998, it was decided to have the 3rd and the 4th units.
On the issue of AES clearing the outstanding dues of the state owned Grid Corporation of Orissa (Gridco) pending since the days when AES was managing the distribution company CESCO, Nayak said, the outstanding dues payable by CESCO from September 1999 to August 2001 was Rs 507.19 crore. Gridco made a claim of Rs 819.8 crore against AES Corporation for the power supplied to CESCO between September 1999 and January 2003. Gridco had gone to the Arbitration Tribunal in February 2003 to realize the dues.
AES also made a counter claim of Rs 67.1 crore against Gridco towards damages and the costs incurred in providing management and technical support to CESCO.