Gujarat govt plans 2000 MW unit in MP

Costs, electricity generation from Rs 8000-crore project to be shared equally

The Gujarat government will soon set up a 2000 MW power plant in Madhya Pradesh (MP). The memorandum of understanding (MoU) for the Rs 8000 crore project is likely to be signed shortly.

This follows the Central government's offer for setting up a unit in MP, which is facing a severe power shortage.

A special purpose vehicle (SPV) would be set up for the power project with the Gujarat and MP governments sharing the costs as well as the electricity generated from the plant equally.

Gujarat chief minister Narendra Modi, who has been following up the project with the Centre for the last few months, had a top-level meeting at his office here on Friday evening. It is understood that he will soon hold a meeting with MP chief minister Babulal Gaur.

It will also be attended by the energy ministers of both the states, said sources in the state government.

Minister of state for energy in the Gujarat government, Saurabh Dalal, denied to comment on the issue.

He said: "A mega power plant with the MP government is in the pipeline. We would comment on this only after the signing of the MoU."

The Chief Minister's Office also avoided commenting on the development.

The proposed plant is expected to bring in additional power for the rural areas in Gujarat that have been facing power crisis.

"Once commissioned, the mega plant will produce power at the cost of only 65 paise per unit as coal mined from the captive coal mines in Madhya Pradesh would be used to fuel the plant. The location for the plant has not been finalised yet," said the state government source.

"The Centre wanted the state government to take part in this project as Gujarat shares its border with Madhya Pradesh and power transmission to both states would not be very difficult," he added.

This development comes at a time when the Gujarat government has been working desperately to meet the increasing demands of power from both industrial sector and domestic consumers.

It has already decided to set up a 300 MW lignite-based power generation unit within the next three years.

"We hope to have the 250 MW Acremota project in Kutch, the 232 MW Sardar Sarovar project at Kevadia and the 11.2 MW Dhuvaran gas-based project operational in the next fiscal year. Moreover, 239 MW is likely to be received from Vindhyachal power station," state finance minister Vajubhai Vala said in his Budget speech on Friday.

The state government has also decided to give a new identity to the world's 'Greenest City' Gandhinagar. It plans to make the city a 'Surya Nagari', with all the energy needs being met from solar power.