 "CAG glare on delay in power projects")
The Central auditor observed that independent power producers (IPPs) that signed MoUs with the state government slipped on their commitments to ensure timely completion of their projects. This deprived the state of achieving a power surplus status, it pointed out.
“The audit officials checked file records of IPPs. They have pointed out slippages in timelines by IPPs in project execution. We have explained to them regarding delays faced by the developers in land acquisition and also in obtaining statutory clearances and coal linkages,” said a senior state government official.
The state government had signed MoUs with 29 IPPs between 2006 and 2009 envisaging a total production capacity of around 37,000 MW. State share of power from these plants was expected to be around 6,000 MW. Most of these developers were lagging the stipulated time-frame to operationalise their projects.
So far, only two IPPs- Sterlite Energy Ltd and GMR Kamalanga Energy have commissioned their power stations. Sterlite has already commissioned four 600 MW units of its 2,400 MW coal-based power plant at Burkhamunda near Jharsuguda in western Odisha. This power plant is presently feeding 475 MW to the state grid.
GMR Energy, on the other hand, has recently operationalized the first unit (350 Mw) of its 1,400 MW plant at Kamalanga near Dhenkanal.
Six other IPPs - Ind Barath Energy (Utkal) Ltd, Maa Durga Thermal Power Company Ltd, Jindal India Thermal Power Ltd, Monnet Power Company Ltd, Lanco Babandh Power Ltd and KVK Nilachal Pvt Ltd were in advanced stage of commissioning their power plants.
Ind-Barath expected to commission its first 350 MW unit at Sahajbahal near Jharsuguda by March. The rest five IPPs hoped to commission their units by 2013-14.
Other IPPs were finding it difficult to raise funds for their projects due to non-extension of lapsed MoUs since banks and financial institutions were averse to lend to such projects.
Besides, the demand for free power by the state government had thrown a spanner in the works.
The state government’s letters to IPPs, seeking their commitment on supplying free power has drawn a blank.