A revised internal assessment by the Orissa government has estimated an investment of over Rs 2.54 lakh crore from 21 Independent Power Producers (IPPs), including 13 which signed MoUs with the state government two years back, envisaging a combined capacity of 59,980 Mws of power during the 11th and 12th Plan periods.
The revised figure is mostly on apprehension of delays that might result in escalation of costs for the proposed IPPs primarily due to lack of land, coal, water and other infrastructural problems. Originally the estimated investment of these IPPs was pegged at around Rs1.67 lakh crore.
Eight newly proposed IPPs awaiting the nod of the high level clearance authority (HLCA) of the state government are also readjusting their figures taking into view the hurdles faced by the 13 that have already signed MoUs.
The 8 new proposals account for 13,100 Mws generation capacity with an investment of Rs 54,791 crore. There are also 5 entries from the non-conventional and renewable sector proposing an investment of Rs 468.28 crore for generation of 65 Mws of green power.
Senior energy department officials said, conservative estimates are that under no condition will the state be able to produce more than 4000 Mws of power by 2011-12, though an ambitious target of 16,000 MWs was set for this period.
The state demand by 2011-12 is expected to reach about 4125 Mws.
Says an official, " Most of the IPPs are yet to apply for open access system with Power Grid for evacuation of power to the western and northern parts of India. Beneficiaries are also yet to be identified. These IPPs have also not completed their financial closures."
The biggest hurdle before the 13 IPPs is arranging coal for starting commercial operations. While some have been allotted blocks in fragments, many are awaiting coal linkage. It is estimated that mining and coal extraction in each block will take up a minimum of five years, thereby delaying project prospects.
According to the assessment, the 13 MoU signing IPPs propose an aggregating generation capacity of 15,590 Mws entailing an investment of Rs 63,306 crore.
This apart, seven new proposals that have been recommended by the single window authority to HLCA envisage 5950 Mws power generation at an investment of Rs 25,606 crore.
Two proposals approved by the single window authority of 25 Mws takes up an investment of Rs 205 crore.
Currently the total capacity projected from CPSUs, UMPP and state sector is about 11,200 Mws with an investment of Rs 50,400 crore.
This includes NTPC, Sundegarh ( already approved by HLCA) of 3200 Mws at a cost of Rs 18,000 crore, Neyveli Lignite Limited ( NLL / CPSU) of 2000 Mws at Rs 8200 crore.
The others are the UMPP - SPV - Orissa Integrated Power Limited ( OIPL) for 4000 Mws at an investment of Rs 16,000 crore. Orissa Thermal ( OTPCL) also has investment plans of Rs 8200 crore for setting up a joint venture with OMC and OHPC.
Government feedbacks are that, till date, 4 companies have made presentation before the committee as per direction of single window authority. These projects envisage generation of 4000 Mws at an investment of Rs 17,848 crore.
Five proposals have been discussed before the task force and recommended to single window authority seeking some further information and additions taking up almost 6610 Mws and investment of Rs 27,105 crore.
Meanwhile, 3 proposals that were discussed before the task force have been dropped and a decision has been taken not to refer their cases to single window due to non response. If effective, this would be around 3440 Mws with an investment of Rs 13,779 crore.
