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Odisha keen to follow Chhattisgarh model to offload stake in OTPCL

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jul 31 2012 | 12:42 AM IST

The state government, which is contemplating to offload 74 per cent stake in Odisha Thermal Power Corporation Ltd (OTPCL), a 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC), is keen to emulate the steps of Chhattisgarh to go about it.

The Chhattisgarh government recently selected India Bulls and Indian Farmers Fertilizers Cooperative Ltd (Iffco) as strategic partners for its two different power projects.

“It has come to our knowledge that the Chhattisgarh government has selected Iffco and India Bulls as strategic partners in two different power projects. We are very much interested to follow the model,” the outgoing energy secretary G Mathivathanan wrote to his Chhattisgarh counterpart while urging him to share the details of the agreement with the private players.

Two officials- Santosh Kumar Sahoo, director (finance) of OHPC and Pranab Kumar Mohanty, company secretary cum finance officer, OTPCL will soon visit Chhattisgarh to study the strategic partnership model adopted there.

OTPCL was set up in January 2009 with a mandate to set up a 2,400 MW project at Kamakhyanagar in Dhenkanal district at an investment of Rs 10,000 crore, using the coal blocks allotted to the two state PSUs, OMC and OHPC.

However, after lapse of three years, no headway has been made in implementation of the project except for issue of notification under section of 4 (1) of the Land Acquisition Act for takeover of 982 acres of private land. The private land comprised about half of the total land need of 1,969.78 acres with the rest being government land (987.77 acres) and forest land (83.94 acres).

The private land is to be acquired in 10 project affected villages-Aluajharana (19.68 acres), Annapurnapur (447.30 acres), Bijadiha (20.81 ares), Bhagirathapur Sasana (15.2 acres), Dhobabaheli (5.89 acres), Kateni (84.24 acres), Kantapala (45.55 acres), Kusumajodi (244.04 acres), Mahulapala (24.98 acres) and Anlabereni (74.32 acres).

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OTPCL has already got the government nod for water allocation. Similarly, OHPC and OMC have pledged the power company their coal share in Baitarani west coal block and Mandakini-B coal block allotted them respectively.

Entire power generated from the proposed power plant will be procured by Grid Corporation of Odisha (Gridco) as per the tariff determined through the bidding process. OTPCL will engage a transaction consultant to assist in working out the state UMPP (ultra mega power project) model based on the experiences of Power Finance Corporation (PFC) and other states in this regard.

Once the process of selection of strategic partner for the 2,400 MW power plant is completed and the project takes off, OTPCL would revive the Rengali site for setting up of another coal-based power plant.

The state government intends to approach the Ministry of Coal for allocation of additional coal block for OPTCL to meet the full requirement of coal for the 2,400 MW plant.

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First Published: Jul 31 2012 | 12:42 AM IST

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