Cost overrun hits North East hydel power projects

The future of at least two hydel power projects in Manipur is under cloud due to cost escalation.

A possible environmental compensation of over Rs 1,000 crore for the 1,500 mega watt Tapaimukh hyro-electric project is expected to rise to Rs 6,700 crore, said officials.

The Public Investment Board, which discussed the project to be executed by North Eastern Electric Power Corporation Ltd last week, is yet to firm its opinion on the viability of the project.

Similarly, law and order problems and the resultant cost escalation has forced the Centre to recommend scrapping of the 90 mega watt Loktak downstream power.

"At these levels, the cost of power could be as high as Rs 6 a unit for Loktak and only marginally lower for Tapaimukh," said an official.

At least two other projects in the north east could be scrapped over the coming days, as, the cost of power from these units is perceived to be on the higher side, officials said. "We need to review all projects which have witnessed cost escalation as the cost of electricity is essential to make a project viable," added an official

While the finance ministry and the power ministry are for stopping further work on the Loktak hydel power project, being implemented by the National Hydro-electric Power Corporation, the Manipur government is pushing that the plant be constructed.

The project cost had increased to over Rs 750 crore, compared with around Rs 580 crore when the Union Cabinet cleared it in December, 1999. The cost started escalating after work on the project stopped following the murder of an NHPC engineer working on the project.

The project is now being reviewed by the Central Electricity Authority which will try to find ways to reduce the cost of the project, officials said.

In line with a Supreme Court directive, the government is bound to compensate for bamboo forest which will be submerged once a the reservoir with a capacity of 15.5 billion metric cube, 75 per cent higher than the Bhakhra reservoir, is constructed for Tapaimukh. "Apart from the environmental concerns we need to keep the economic viability in minds," said an official.

PLANS UNDER CLOUD
Environmental compensation of Rs 1000 crore hits Tapaimukh plan

Centre for scrapping Loktak downstream power project due to cost escalation

Two more in jeopardy since the cost of power is unviable

Economic viability, ecological concerns key to get nod for power projects