NHPC peeved at REL entry in Arunachal

National Hydroelectric Power Corporation (NHPC) is upset with the Arunachal Pradesh government over its recent decision to award hydroelectric projects in the state to private players without going through the competitive route.

"According to government norms, projects above 100 mw cannot be awarded through the memorandum of understanding route; competitive bids are mandatory", chairman and managing director S K Garg said.

The company is unhappy that the state chose to hand over the power plants to private developers inspite of it doing the preliminary groundwork for these projects, he added.

The company has written a letter to the state government protesting the move to allow private power companies Reliance Energy, the Jaiprakash group and DS Constructions to set up hydroelectric projects, Garg said at the company's annual review here.

On the company's agenda is an initial public offer (IPO) as asked by the power ministry. "The power ministry has asked us to expedite the process for an IPO," Garg said.

The company aims to achieve 10,000 mw generation capacity by 2012. The company's power stations achieved a capacity index of 98.16 per cent and a highest-ever generation of 12,567 million units for 2005-06.

NHPC, for the first time, has started generating its own funds and has a surplus, Garg said. The company plans to generate Rs 4,800 crore from internal resources within the next plan period (2007-12).

The corporation is also planning more projects in the northeastern states, and is also reengineering and reorganising its entire operations.