Maharashtra inks MoUs with eight firms for 12,500 mw projects

Plan to make Maharashtra a Power surplus state by 2010

Maharashtra today inked a 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 these plants could run into over Rs 50,000 crore.

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

The twp power projects from Ispat group for a 3,000 mw will be executed by Ispat's subsidiary companies- Central India Power Company (CIPCO) and Ispat Energy CIPCO located at Bhadrawati in Chandrapur district in Maharashtra will produce 2,000 mw power in a phased manner and Ispat Energy located at Dolvi in Raigad district will produce 1,000 mw.

According to an Ispat release, the project cost of CIPCO is around Rs 5000 crore whereas the project cost of Ispat Energy is exepted to be around Rs 4,000 crore. Ispat Energy has already commenced 110 mw gas-based project at Dolvi, which will form a part of 1,000 mw coal-based project.

Both the projects are expected to attain financial closure within one year. In its initial stages, CIPCO will produce 500 mw power followed by another 500 mw in the second phase and balance 1,000 mw in the last phase.

State energy minister Dilip Valse Patil said the current power deficit stood at 3,000 mw and by 2010 it is estimated to be 7,700 mw. This initiative is a step in making the state of Maharashtra a power surplus state.

Chief minister Vilas Rao Deshmukh said that the power purchase from these 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 per cent tax exemption from stamp duty and registeration charges for the projects, a 100 per cent exemption from octoroi for machinery and other equipment required for initial setting up of the project.

However, to avail of these benefits, the independent power producers (IPPs) will have to sell 50 per cent of commissioned capacity and energy generated at any time from project implemented under this 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 this policy.

Commenting on Dabhol Power Company, the chief minister indicated that the Centre is working towards the revival of this 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 the Maharashtar State Electricity Board (MSEB) will add a capacity of 3,000 mw, through expansion at its gas-based project of 1,040 mw at Uran, 500 mw plant at Khaparkheda, 1,000 mw new project at Talegaon and upcoming two projects of 250 mw each at Parli and Paras.