Raj to divest equity of 4 units of thermal power plants

Equity of four units of thermal power plants in Rajasthan will be disinvested through tariff based bidding in order to reduce the losses of power companies.
A proposal to this regard was cleared in a Cabinet meeting here chaired by Chief Minister Vasundhara Raje.
"Tariff based bidding will be conducted in a transparent manner for two units of Kalisindh thermal power plant and two units of Chhabra thermal power plant in public interest," Parliamentary Affairs Minister Rajendra Rathore told reporters after the meeting.
He said the decision was taken in accordance with a Budget announcement of 2014-15 and on the basis of the report of a task force which the government set up after recommendation of a consultant.

"The decision is in public interest. The state government will give preference to public sector companies like NTPC and then private companies.
"The privatisation of these units will help the power companies reduce their losses and power production will also take place at cheaper rates," he said, while rejecting that it (privatisation) was a failure of the state government.

Rathore said the Cabinet also reviewed the implementation of Mukhymantri Jal Swavalamban Abhiyan under which 1.74 lakh works to create water conservation structures are to be done in 3,529 villages by the end of June this year.
He said that 22,131 works worth Rs 12 crore have been started so far.

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Four operational units of 250 MW capacity each and two other under-construction units of 660 MW capacity each would be disinvested at Chhabara Thermal Power Plant, Rathore said.
Two new units of 660 MW capacity each would be installed at Kali Sindh plant in the private sector, he added.
The minister said that this disinvestment would put a stop to the deficit of power companies as well as ensure availability of power to the consumers at reasonable rates.
This could reduce capital loans worth Rs 7,434 crore on the state government and provide capital gains amounting to Rs 721 crore, he added.

Similarly, disinvestment of commissioning and operations of the under-construction units through Tarrif Based Bidding would result in overcoming losses and availability of cheaper power, Rathore said.
The minister added that interests of all officers and employees would be protected during this disinvestment process and no one would be separated from the services.