An empowered committee of the Uttarakhand government today gave its nod to four co-generation projects in Uttarakhand. These projects would produce 41.25 megawatt (Mw) of power. The approval assures central subsidy for all the four companies — Luxmi Sugar Mill, Uttam Sugar Mill, Siddheshwari Paper Mill and Bharat Electronics Limited (BEL).
The committee, headed by Chief Secretary Subhash Kumar, also approved Luxmi Sugar Mill and Uttam Sugar Mill’s decision to sign a power purchase agreement with government-run Uttarakhand Power Corporation Limited for selling sell additional power.
The empowered committee asked the Uttarakhand Renewable Development Agency (Ureda ) to send a proposal to the ministry of new and renewable energy for securing subsidies for the four companies involved in the co-generation projects. According to the proposal, BEL would produce 25 Kw of solar power for captive use at its Kotdwar-based unit, while Siddheshwari Paper Mill would generate 6 Mw of power. Luxmi and Uttam sugar mills would generate 20 Mw and 15 Mw of power, respectively.
According to senior Ureda officials, the ministry of new and renewable energy offers substantial subsidies for such projects. The approval for the co-generation projects comes amid an acute power shortage in Uttarakhand. This has forced Uttarakhand Power Corporation Limited to buy electricity from other states at higher rates.