NHPC, Jharkhand in spat over Koel-karo

National Hydroelectric Power Corporation chairman and managing director Yogendra Prasad has accused the Jharkhand government of non-cooperation in setting up of the 710MW Koel-Karo Hydroelectric Power Project (KKHEPP).

Jharkhand chief minister Arjun Munda had announced last year that the state government had dropped the project as the cost of power from the project would be as high as Rs 7.10p per unit.

Refuting the allegations of high cost, the NHPC CMD said following the drop in interest rates, power from the project would be available at Rs 4.57 per unit besides additional supply of 10-15 per cent free power.

At present, cost of the project was fixed at Rs 2,600 crore. The Jharkhand government had signed a power purchase agreement with NHPC.

Earlier, speaking at the workshop on 'National electricity Act 2003', Union power secretary R V Shahi suggested the problems surrounding erection of the hydel project could be settled across the table. Some local people and the state were against the project.

The NHPC chairman said at the workshop that hydel power was the best choice before the country. Hydel power would lead to grid discipline and help maintain the right frequency in transmission and distribution.

Shahi said the eastern region was sending nearly 3400MW of power to other parts of the country every day. A 60:40 mix of thermal to hydel power had been suggested more than 10 years ago, he added.

The central government's budget had allocated Rs 25,000 crore to the power sector, of which Rs 17,000 crore was to be spent on hydel power. Till date, 162 new hydel projects had been identified in 16 states for completion by end of the 13th Plan. Besides, 62 thermal power plants would be built.