Maharashtra lines up slew of power projects

FROM THE POWER FRONT

It is an enviable line up and if all goes well, by 2012 Maharashtra could well end up with a total installed capacity of 23,000 mw. More than enough to meet the projected shortfall of 10,000 mw for the state.

The line up for new projects is-7,540 mw from Mahagenco's projects, 8,000 mw from Independent Power Producers, 6,000 mw from the proposed Jaitapur nuclear power plant and another 2,150 mw from the Ratnagiri Gas and Power Pvt Ltd (RGPPL).

Of the 8,000 mw to be bought from IPPs, the Maharashtra State Distribution Co Ltd (MSDCL) has already invited tenders for 4,000 mw, while power purchase agreements have been signed with National Thermal Power Corporation for 2,700 mw.

As of today, the state needs additional 3,500-4,000 mw of power. While the demand for power has been rising at a rate of 2-3 per cent over the last ten years, it has suddenly spurted by 8-10 per cent, widening demand supply gap all of a sudden. Over the next five years, this gap is expected to widen to 8,000-10,000 mw.

The ball has been set rolling to meet this galloping demand. The Parli, Paras and Ghatghar power projects are expected to add 750 mw to the state grid over the next six-eight months. By May 2006, the first block of Dabhol power project will add another 740 mw to the state grid. Talegoan power plant is expected to add 1,400 mw, while another 1,600 mw is being added using imported coal at Nashik, Bhusaval and the proposed plant at Dhopave.

Funding for these projects is expected to come in three ways-a Rs 500 crore budgetary grant from the state government, internal accruals and raising equity from the market. The four companies, Mahagenco, Mahadiscom, Mahatransco and the holding company are in the process of finalising their balance sheets to facilitate market borrowing.

Mahadiscom is also spending Rs 1,000 crore on revamping its infrastructure.

Currently, the utility faces 35 per cent transportation and distribution (T&D) losses but plans to bring it down to 3 per cent by next fiscal, which would result in a revenue upswing of Rs 180 crore.

The Union power ministry is pushing power generating entities across the country to streamline operational efficiency to enhance plant load factors to 35-39 per cent. This will also add to availability of power, a senior power ministry official said.