Orissa may trip AES, Kalinga

The Orissa government today gave an ultimatum to two independent power producers (IPPs) "" the US-based AES Transpower and Kalinga Power Corporation "" to initiate ground action for setting up their greenfield projects in the state within a month.

"If they do not take concrete steps for implementation of the projects in 30 days, the MoU and power purchase agreement (PPA) singed with them for the projects will be cancelled," said S N Patra, state energy minister.

The MoUs for both the power projects were signed in early 90s. AES and Kalinga Power proposed two thermal power stations at Ib Valley and Duburi, respectively, in Jajpur district.

AES proposed to set up units V and VI of 250 mw each at the Ib Valley Thermal Power complex in Jharsuguda district.

The company currently has 49 per cent stake in Orissa Power Generation Corporation (OPGC) which owns first two units of 210 mw each in the same complex.

Kalinga Power proposed to set up a 500 mw station at Duburi close to the Kalinga Nagar Industrial complex where half a dozen steel plants, including those proposed by Jindal Stainless Steel, Visa Industries and Tata Steel, are under construction now.

However, there has not been any progress on these projects till date. Patra, today reviewed the thermal power generation position of the state in a high-level meeting, said new projects had to come up on an expeditious basis in view of the demand projections.

At present, the state grid is drawing 12,277 million units of power from various generating stations located within the state annually.

This apart, the state is also getting 4,362 million units from various NTPC power station located at Kaniha, Chukha, Farraka and Kahelgaon towards its share in generation.

So the total availability of power in the state annually is pegged at 16,640 million units out of which it 13,188 million units are being sold to four distribution companies engaged in supply of retail power while 2,800 million units are being exported outside.

The state loses 600 million units as transmission and distribution leakages.

In view of the rapid industrialisation in the state, the energy department has projected the power demand at 16,827 million units by 2008-09 and 19,185 million units by 2011-12.

This has necessitated action to add thermal power capacities in the state, Patra said adding apart from the AES and Kalinga Power projects, the work on unit III and IV (250 mw each) of the OPGC at Ib valley is pending for implementation and steps will be taken soon to construct the project at the earliest.

Considering that a greenfield power plant takes about 36 to 48 months for completion, the state has decided to hurry up the work on all the pending projects.