The Karnataka government today signed memoranda of understanding (MoUs) with public sector energy major National Thermal Power Corporation (NTPC) and power equipment major Bharat Heavy Electricals Limited (BHEL) to set up new thermal and wind energy projects in the state with a cumulative capacity of 6,900 Mw in the next four years.
NTPC will invest Rs 22,500 crore to set up a 4,000 Mw thermal power station at Kudigi in Bijapur district and 500 Mw wind power plant at six different locations in north Karnataka. Power Corporation of Karnataka Limited (PCKL) signed the MoU with NTPC for the project. The projects will use both domestic and imported coal to run the plants.
Another 2,400 Mw thermal power station is being set up through a joint venture between Karnataka Power Corporation Limited (KPCL), Bharat Heavy Electricals Limited (BHEL) and a private player. IDFC has shown interest to be the third partner in the JV.
Three separate MoUs were signed today in the presence of Karnataka chief minister B S Yeddyurappa, Union minister of state for power Jairam Ramesh, Sontosh Mohan Dev, Union minister for heavy industries and public enterprises, K S Eswarappa, Karnataka minister for energy, CMDs of BHEL, K Ravi Kumar and NTPC, R S Sharma among others.
MoU with NTPC marks the maiden entry of NTPC into Karnataka as its earlier attempt to set up a 2,000 Mw thermal power plant near Mangalore in the late 1980s had not materialised. According to the present MoU, NTPC will set up a 4,000 Mw supercritical thermal power plant at Kudigi, about 18 Kms from Almatti dam at an investment of Rs 20,000 crore in two stages.
Under the stage-I, 3 units of 800 Mw and two units of 800 Mw under the stage-II will be constructed. The state government is acquiring 3,000 acres of private land for this project. Water source for this site is Alamatti dam on Krishna river.
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According to the MoU between KPCL and BHEL a joint venture company with 26 per cent equity stake each will be formed to execute the 2,400 Mw thermal power plant at Yermarus (1,400 Mw) and Yedlapur (660 Mw) villages in Raichur district.
The third MoU was signed between KPCL and NTPC for setting up a 500 Mw wind power project at six places such as Bailahongala, Godachi, Saundatti and Ramadurga in Belgaum district, Guledagudda in Bagalkot district and Kappathagudda in Gadag district. This is the first ever major wind power project being set up by NTPC, its chairman and managing director R S Sharma told reporters after signing the MoU.
While KPCL will provide the land and other infrastructure, NTPC will erect and operate wind mills in the state. The total investment in this venture is estimated at Rs 2,500 crore.
Currently, NTPC is preparing the detailed project report for assessing the techno-commercial viability of the identfied projects, Sharma said.