2,000 Mw plant expected to come up in MP

American multinational ISN will set up a 2,000-Mw thermal power plant with an investment of Rs 10,000 crore in the Sidhi district of Madhya Pradesh, according to the MP government.

The power plant will be operational after three years. Outgoing Chief Minister Babulal Gaur assured the company of co-operation from the state government. The chairperson of ISN, Roma Malkani, and Gaur yesterday held discussions in this regard amid political uncertainty and leadership crisis in Madhya Pradesh.

"Malkani was here to submit a proposal to the state government," a government spokesperson said.

The plant will be set up in phased manner.

"It will generate 2,000 Mw initially but later the capacity could be enhanced to 4,000 Mw. Work will begin from February. The Moher mines (bordering Uttar Pradsh) of Sidhi will supply coal for the plant while the Rihand dam of the district will supply water," said the spokesperson.

The power generated will be shared by the Indian Railways, National Mineral Development Corporation, and the Madhya Pradesh government. The break-up will be 1,000 Mw, 500 Mw, and 500 Mw, respectively.

"The new plant will generate 4,000 direct and indirect jobs," the spokesperson said. The state government is expecting a financial closure of the plant soon. Tariffs and other details are yet to be known.

Madhya Pradesh is experiencing a power shortage again because the 1,000-Mw Indira Sagar project is producing short of capacity. The state government has recently charted out a plan for scheduled power cuts.

Three power projects of 500 Mw each are coming up in the state during 2007-2009 although none of the private power firms has come up so far. The state government has received power proposals during the past two years but nothing has materialised.

"In some cases either power tariffs quoted by the firms are not acceptable or the power firms allow talks to die down," said a senior government official.