Kedias revise MP investment

Delhi-based Kedia Power Ltd has revised its Madhya Pradesh power project. The company had proposed to set up a coal-based 600-Mw power project in Bamnia in the Jhabua district.

It has now said it will make a total investment of Rs 2,400 crore in the project, which will be in a 70:30 debt-equity ratio.

PTC India Ltd (formerly known as Power Trading Corporation) has entered into a deal with the company to purchase power.

"The state can draw power from this project in accordance with their requirements through PTC," the company said in an application to the state government cleared recently.

Kedia has asked for 250 hectares (of which 145 hectares is government land) and has sought diversion of the Bamnia-Karwad road at its own expense.

Kedia power had a deal with the state government in 1995 for a 360-Mw gas-based power project and had secured state government guarantee, executed the power purchase agreement, and deposited money for land acquisition in the Jhabua district.

It had secured all permission for the execution of the project. "Due to unavoidable reasons, the project did not take off," said a government insider, adding, "the company has demanded permission to draw water from nearby Mahi project on royalty basis. The project clearance board will discuss on offering land and related facilities to the project."

The project will create 200 direct employments and 1000 indirect employment. The company has said it was under negotiation for long term supply arrangement of imported high quality coal is under negotiation. In addition to road diversion, land and water, the other demands of Kedia include clearance for laying a pipeline.

According to the 2001 census approximately 85 per cent of population of Jhabua is tribal while 3 per cent population belongs to Schedule Castes, and 47 per cent of the people live below the poverty line. The literacy rate is 36.87 per cent with female literacy of only 4 per cent.

Thus, Jhabua is an overwhelmingly tribal and poor district. With most of sick units, the district has only one industrial growth center in Meghnagar with hardly 20-25 industries.