M'rashtra signs MoU with IPP

The Maharashtra government has signed one more memorandum of understanding (MoU) with the independent power producer (IPP) when none of the 12,500 Mw projects it signed MoUs has taken off yet.

This time the Lokmat Group of Newspapers and Abhijeet Group that has interest in construction, mining and power sector wants to set up 1,200 Mw coal-based project at Yavatmal at an investment of Rs 5,000 crore.

During 2005-2006, the state government signed MoUs with six companies to generate 12,500 Mw of power which includes Tata Power Company, Reliance Energy Ltd, Jindal Group, Essar, Ballarpur Industries among others.

However, none of these projects has taken off except the 1,200 Mw Jindal Group's power project at Ratnagiri district, where some progress has been witnessed on the ground.

The TPC and REL projects failed to take off as both companies got involved in a slug-feast over land which the state government has not managed to resolve yet. Other projects also faced the hurdles in getting land, local resistance, environmental clearances, coal linkages and completing financial closure.

At the ceremony to sign the MoU Chief Minister Vilasrao Deshmukh admitted to have difficulties getting these projects off the launch pad and assured that the project will not face any such problems. However, he didn't elaborate on how he proposed to do it.

Sources close to the development said, the state government has promised both the groups that it will provide coal linkage from Lohara block in Wardha district of the state from the Western Coalfield Ltd's mines.

However sources further added, there is no more coal which can be allocated for any project from the state's share.

Besides, to bring water for the project, a barrage needs to be constructed on Wardha river.

There is no understanding yet between the state government and these groups who will bear the cost of construction of barrage and who will obtain the necessary clearances for constructing a barrage, sources pointed out.