Deal likely on US investment in MP power

The Madhya Pradesh government is learnt to have been analysing the benefits of the proposed investment of American multinational ISN Information Systems & Networks Corp of $2 billion (Rs 10,000 crore approximately) to set up a power project of 2,000 Mw (four units of 500 Mw each) capacity.

Official sources told Business Standard the project was proposed to come up at Chitrangi tehsil in the Sidhi district. The company has sought status on fuel linkages, land acquisition, the availability of water its charges.

"A power purchase agreement is expected but ISN International has proposed to supply to Madhya Pradesh only part of the power generated from the project and in this context the benefits of the project are to be analysed," a senior government officials told BS, adding, "the Union ministry of power is insisting upon state governments to procure power through competitive bidding process."

The project, if takes shape is likely to be completed by 2009. An official in department of industry told Business Standard that an area of 470.16 hectare (private land), and another area of 1589.10 hectares in Bagiya and Badgarh village of Chitrangi tehsil has already been approved by district collector.

The project may get water from Remand reservoir. "The water availability land area related issues are under consideration," said the official.

The power generated from the project will be shared by the Indian Railways, National Mineral Development Corporation, and the Madhya Pradesh government. The break-up will be 1,000 Mw, 500 Mw, and 500 Mw, respectively.

The ISN proposed investment, which is likely to generate 4,000 direct and indirect jobs, however a financial closure and, tariff and power purchase agreement are yet to be worked out.

Meanwhile the power shortage in state touching a maximum of 13 hours. According to power board sources, there was a shortage in power supply from western grid.

"With mercury soaring higher, the power demand has gone up by 150 megawatt against the shortage of 250 MW. The western grid supplied only 1144 MW of power on Wednesday," said a source.

The state has a shortage of 1900 MW against the demand of 5850 MW. The total availability stands at 3950 MW that includes1933 thermal power, 873 hydel power and 1144 MW central quota.