Don’t miss the latest developments in business and finance.

West Bengal govt transfers hydro projects to NHPC

Gives fillip to Centre's mega-merger plan

Image
Probal Basak Kolkata
Last Updated : Jul 20 2015 | 9:32 PM IST
West Bengal government has given a fillip to Centre's mega merger plan of all state-owned hydro electric units with National Hydroelectric Power Corporation (NHPC), by handing over state's four hydro power projects with a combined capacity of about 293 MW to the central PSU.

These four projects -- Teesta Low Dam-V, Teesta low dam I & II combined, Teesta Intermediate Stage and Rammam Stage-I, all located in District Darjeeling of West Bengal – were so far under West Bengal government-run power agency West Bengal State Electricity Distribution Company Limited (WBSEDCL). “All these projects were under various stages of implementation. We believe, NHPC being a specialised large player is better equipped technically and financially to take these projects, forward," West Bengal power minister Manish Gupta said.

Following a state cabinet decision in this effect, West Bengal government has signed an MoU with NHPC earlier in the month, to execute the transfer. According to the agreement all these projects shall be developed on build, own, operate and maintain (BOOM) basis by NHPC.

More From This Section

The development comes at a time, when Narendra-Modi government has taken up a plan to merge all central hydro power companies with NHPC and create a mega entity. For this a an initiative has already been taken up for merger of central hydro power utilities — the National Hydroelectric Power Corporation (NHPC), Tehri Hydro Development Corporation, Satluj Jal Vidyut Nigam and North Eastern Electric Power Corporation — into a single entity, which will see NHPC taking the lead role.

According to a report prepared by SBI Caps at the behest of NHPC, the plan is to turn NHPC into a mega hydro power entity with a market value of over Rs 51,000 crore and a government stake of up to 81 per cent.

Beside, NTPC, India’s single-largest thermal power company generation capacity of over 43,000 MW, is also asked to focus on its core area, and NTPC too may consider transferring its hydro projects to NHPC if the government takes such an initiative.

NTPC is currently constructing 1,500-Mw hydro capacity, which are in the various stages of implementation.

Also Read

First Published: Jul 20 2015 | 8:35 PM IST

Next Story