Maharashtra govt inks deals with 8 IPPs

The Maharashtra government today inked memorandum of understanding (MoU) with eight private sector players  to set up power plants with 12,500 MW capacity over the next five years. Investments in the plants could be over Rs 50,000 crore.

The list of private sector players include CIPCO (2,000 MW at Bhadrawati, Chandrapur), Essar (either a 1,000 MW coal-based plant or a 1,500 MW gas-based plant at Ratnagiri), GMR (1,000 MW), Ispat (1,000 MW near Dolvi in Raigad), Jindal (1,000 MW), Reliance (4,000 MW), Spectrum (500 MW in the Vidharbha region), and the Tatas (1,500 MW - expansion of the 500 MW Trombay unit and 1,000 MW in Vile, Raigad).

State energy minister Dilip Valse Patil said the current power deficit stood at 3,000 MW, and it is estimated to go up to 7,700 MW by 2,010. "This initiative is a step in making Maharashtra a power surplus state," he added.

Chief minister Vilasrao Deshmukh said purchases from the projects will be made on competitive bidding process as per the guidelines of CERC and MERC. He added that the state will provide incentives such as 100% tax exemption from stamp duty and registeration charges for the projects and 100% exemption from octoroi for machinery and other equipment required for the initial setting up of the project.

However, to avail of these benefits, the independent power producers (IPPs) will have to sell 50% of commissioned capacity and energy generated at any time from projects implemented under the policy within Maharashtra.

This initiative, the chief minister added, will be available only to such investors who submit the detailed project report (DPR) within six months, attain financial closure within one year and commission the project with five years from the date of declaration of the policy.

Commenting on Dhabol Power Company, the chief minister indicated that the centre is working towards the revival of the project. Maharastra has conveyed to the central government that it will buy the entire 2,184 MW power at the rate of Rs 2.20 per unit.

He said that Maharashtra State Electricity Board (MSEB) will add 3,000 MW through expansion of its gas-based project of 1,040 MW at Uran, 500 MW plant at Khaparkheda, 1,000 MW new project at Talegaon and two upcoming projects of 250 MW each at Parli and Paras.