4 pvt power projects to start operations by 2010: MP govt

Even formal proposals from a few private players awaited

The Madhya Pradesh government today assured that a few private power projects, of which the even the formal proposal had not been received, would be completed in four years.

In a written reply to the Assembly today, Power Minister Kailash Vijayavergiya said the following projects would be completed by 2009-10""the 360-Mw gas-based project by Chennai firm Aban Lloyd, the 400-Mw Neyveli Lignite project, the 400-Mw Maheshwar power project, and the 300-Mw Lanco Amarkantak project.

"The demand-supply gap of 2,168 Mw (the existing power generation is at 4,120 Mw and the demand is 6,400 Mw) will be bridged by 2008-09," Vijayavergiya said.

A government source said, "The private power projects are yet to take shape. Some of them have not even come forward with formal proposals or tariff plans. The Aban group has not turned up so far, after initiating talks with the Uma Bharati government. Similarly, Neyveli Lignite Corporation and Lanco Amarkant are yet to come forward."

The minister said the state government would add 517 Mw in 2005-06, 1,235 Mw in 2006-07, 1,788 Mw in 2007-08, and 721 Mw in 2008-09. He also said the state had started receiving 228 Mw from two units of the Sardar Sarovar project recently, and another unit would supply power to the state this month. Further, 90 Mw will be available through the Tarapur Atomic Power station.

The minister said the other two hydel power projects owned by the state electricity board were functioning, though they were under construction.

"The Bansagar Tons hydel power project of 20 Mw and the 40 Mw Marhikheda power project are not operational, since gates have not been installed so far," said an insider.

Cumulative losses of the state electricity board (now split into five companies) have been Rs 2,361.39 crore (in 2003-04), and power subsidies have gone up to Rs 1,379.82 crore or 191 per cent higher, in comparison with that offered in 2002-03, and 152 per cent more than that offered in 2003-04. Power cuts are more than six hours in rural areas.

The only state government hydel power project that has taken shape recently is the 1,000-Mw Indira Sagar power project, which is producing only 125 Mw. The 520-Mw Omkareshwar hydel power project is expected to start operation by 2007.