The Damodar Valley Corporation (DVC) has sought the power ministrys permission to treat its 1000-mw Maithon Right Bank thermal power project as an export-oriented power plant.
DVC, which had earlier planned this project for its exclusive use, is now scouting for power purchasers outside the eastern region.
The eastern region is expected to be a power surplus region in the next decade.
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The plan is to commission two 250-mw units within the Ninth Plan and two more 250-mw units in the next plan period.
DVC chairman A K Mishra said yesterday the corporation will be able to meet the normal growth in demand in the Damodar valley region by improving the utilisation of its existing power generating capacity.
Mishra said the Ib Valley project and the Talcher stage-II project in Orissa are export-oriented power projects.
The Maithon thermal project is estimated to cost Rs 3,298 crore excluding the interest costs incurred during construction and the working capital requirement. The project will be located on the right bank of the river Barakar in Bihar. Its daily water requirement of 135 million litres will be met by the Maithon reservoir on the Barakar river.
At present, DVC is weighing two funding options. Mumbai-based BSES had signed a MoU with DVC for setting up the Maithon project as a joint venture, with BSES holding the majority stake.
The MoU has recently been revised. Under the latest Central government guidelines, both DVC and BSES will have a 45 per cent stake with 10 per cent being held by financial institutions. Under the revised MoU, BSES has agreed to market the power generated at the Maithon power station.
The revised MoU is now being looked into by the power ministry.
The second funding option is a loan from the Overseas Economic Cooperation Fund (OECF) of Japan. DVC has told the power ministry that the PowerGrid Corporation must be associated with the project to ensure that PowerGrid markets the output.
There are two other funding offers.
The Russians are keen to revive an old proposal to fund the project with four 210-mw units. Ansaldo of Italy has also offered to take up the project by supplying the main equipment packages on a deferred credit basis.
But, DVC can accept only that proposal which ensures full marketing of the energy generated at Maithon.
Mishra said the location at Maithon was excellent and it was important that the project got commissioned as soon as possible.
He added that it was only a question of setting up a proper transmission line to transmit the power to any corner of the power-deficient country.