ISN power project in MP may not come through

Insiders in the Madhya Pradesh government are doubtful about US-based ISN Information Systems & Networks Corp's plans of investing $2 billion (Rs 10,000 crore approximately) to set up a power project of 2,000 Mw (four units of 500 Mw each) in the state.

"The company does not seem to be serious about the project. There is no representative of the company in the state," said a source in the power industry. However, the company has signed the power purchase agreement (PPA) with the state government.

"The firm has signed the PPA with us to supply power at Rs 2.30 per unit. It will supply a share of power from the proposed project," a senior government official told Business Standard.

The Madhya Pradesh government is learnt to have been analysing the benefits of the proposed investment of the US multinational. The project is to be set up at the Chitrangi tehsil of Sidhi district.

A few days ago, the company had asked for the government's position on fuel linkage, land acquisition, availability of water and proposed estimated cost of water supply or proposed levelised tariff.

The proposed project is likely to take shape by 2009. The district collector had earmarked 470.16 hectares of private land and another area of 1,589.10 hectares in Bagiya and Badgarh village of Chitrangi tehsil for the project.

"Water will be supplied from the Remand reservoir," said a source. Besides Madhya Pradesh, power generated from the project will be shared by the Indian Railways and National Mineral Development Corporation.

The Indian Railways, according to the source, will get 1,000 Mw while Madhya Pradesh and NMDC will get 500 Mw each.

The proposed project is also likely to generate 4,000 direct and indirect jobs. Madhya Pradesh is expecting 710 Mw of power from the Sanjay Gandhi thermal power station, Birsinghpur and Amarkant power station, 20 Mw from Bansagar, 40 Mw from the Marikheda project, 100 Mw from Sardar Sarovar, 520 Mw from the Omkareshwar project, 20 Mw more from Indira Sagar, 10 Mw from the Bergi project (Jabalpur) and 448 Mw from the central sector by next year.