NTPC appoints Crisil for fuel identification survey

GPCL to pick up 50 percent stake in new power plant

The two-year old deadlock over the proposed mega power plant of National Thermal Power Corporation Ltd (NTPC) at Pipavav in Amreili district seems to have ended.

The Corporation on Monday confirmed its plan to finally setup the 2000 MW plant in which 1000 MW plant would be installed in the first phase. NTPC has assigned the credit rating agency, Crisil, to carry out a fuel identification survey for the plant.

In a top-level meeting held in the city today, the state government informed NTPC that its own enterprise, Gujarat Power Corporation (GPCL) would pick up 50 per cent stake in the joint venture to be created for the project. The meeting was attended by C P Jain, chairman of NTPC, Saurabh Dalal, minister of state for energy and P K Laheri, state chief secretary.

NTPC has created a company, Pipavav Power Development Company (PPDCL), for the implementation of the project. GPCL is expected to pick up 50 per cent stake. The project in the first phase is expected to attract investment of around Rs 4,000 crore.

During first quarter of the calendar year, the state government and NTPC had signed a Memorandum of Understanding (MoU) for the project. But since then the project was gathering dust.

A source in state Energy Department also said that the state government has already cleared necessary permissions required for the project. The clearance from ministry of environment is yet to be received. The construction work on the project would commence once the clearance is received.

While Jain and NTPC officials were not available to comment on the development, Dalal told Business Standard, "At this moment we can only say that the meeting was fruitful and paved the way for the implementation of the project, finally."

When asked how GPCL would fund the 50 per cent stake, the minister said, "This is being worked out. Both equity and debt routes might be adopted. This, however, depends on the clearances from various other concerned departments of the state government."

The plant is to be set up at Pipavav and is expected to cater the power demands of the Saurashtra region. GPCL was set up by the state government way back in 1990 with an object of enhancing the power capacity in the state. The entity was created in association with Gujarat Electricity Board (GEB) for raising investment in power sector by the private entrepreneurs.

The main objects of the company include power generation based on various fuels and establishing power stations in various areas of the state by attracting more and more investments from the private entrepreneurs.

Interestingly, GPCL will offtake 80 per cent power from the first phase of the project as the second phase will also lead to installation of another 1000 MW capacity.

NTPC, which has been also eyeing for power distribution rights on a franchisee arrangement in Rajkot and Vadodara, may use the rest. Meanwhile the state government is yet to take a final decision on NTPC's interest in getting into power distribution.