The Madhya Pradesh government has decided to hand over the 1,320-Mw Shahpura thermal power project in Shahpura (Jabalpur) to Narmada Hydroelectric Development Corporation, a joint venture company of state and National Hydro Power Corporation (NHPC). This would be the second thermal power project for the nation's hydel power giant.
Earlier Madhya Pradesh Power Trading Co Ltd had planned to set up the project and had applied for coal linkage in 2007 after identifying government land and obtaining environment clearances. “After a long wait for coal-linkage we have decided to hand over it to NHDC. The company has already undertaken a thermal power project in Khandwa and it would be easier for them (NHDC) to pursue for coal-linkage as they are part of a Central-government entity,” a government source, on condition of anonymity, told Business Standard.
Confirming the reports, a top executive of NHDC said, “Our board of directors have given the “in-principle” permission and approval for the project, we have applied for the equity to both state government and NHPC.”
Both, state government and NHPC are likely to pick equal equity in the project to a maximum of 30 per cent as NHDC is likely to exhaust its internal funds in the recently obtained 1,320-Mw Rewa thermal power project in Khandwa district. “The rest of the funding will come from debt instrument,” the executive said, “A formal announcement in this regard will take place within two months from now as the state chief minister Shivraj Singh Chouhan has assured us about equity.”
Earlier the government had made a futile attempt to invite other companies and had also set up a special purpose vehicle for the project as Shahpura Thermal Power Co Ltd. Efforts were reportedly made to offer the project as a company on Ultra Mega Power Project model.
The state power department also pursued National Thermal Power Corporation (NTPC) for the project in vain. “We also urged the NTPC to take over the project but they did not show interest in it,” the government source said.
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The NHDC has started working on preparing a DPR (detailed project report) for the project, once it receives green signal for equity, it would initiate process of obtaining coal linkage and environmental clearances. Meanwhile, sources have also said, “The installation capacity of the project may go up to 1,600 by the time a DPR and necessary clearances are obtained as it is a super critical thermal power project. There will be two units of either 660x2 or 800x2.”
After completion of this project NHDC will have combined generation capacity of 5,000-Mw in Madhya Pradesh where it boasts of successful completion of 1,000-Mw Indira Sagar and 520-Mw Omkareshwar hydel power project.