The Madhya Pradesh State Electricity Board (MPSEB) has decided to set up a 210 mw power plant at Chechai in Amarkantak. It would be an extension of the existing thermal power station.
The cost of the project is estimated at Rs 800 crore. The board will get financial assistance from Power Finance Corporation (PFC) and other financial institutions, highly placed sources said. The project is expected to be completed by 2006-07. On completion, the plant would generate 1565 million units of power annually.
Sources informed that MPSEB has obtained permission of the Water Resource Department for necessary constructions on Son river and to source water from the river. The state government has also made efforts to ensure coal supply for the project.
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MPSEB spokesperson Santosh Tiwari said from the Jabalpur headquarters of the board: "A high-level team recently visited the site of the Amarkantak project and we will get a positive response from PFC."
At present, two units are functioning at Amarkantak with a capacity of 50 mw and 240 mw each.
The Madhya Pradesh government has also completed the legal formalities to erect a 220-meter chimney for the proposed project. The MPSEB has sought clearance from Airport Authority of India Ltd for the purpose.
MPSEB is taking steps to avoid power cuts for long durations. The state is also receiving 300 mw extra power supply from the Eastern grid (from the EB Thermal Power Station at Orissa).
Madhya Pradesh has its own power generation of 1700 mw and it draws 1400 mw from NTPC, while it needs another 450 mw to avoid power cuts.
"The power supply situation will improve once the hydel power plant starts generating power at optimum capacity. We expect all the hydel units to start generating power from July 15,'' the MPSEB spokesman added.