Despite opposition from certain quarters, the Uttarakhand government is going ahead with its plans to set up gas-based power projects in the state.
“We will see to it that the gas-plants are built at the earliest since the state is already facing power shortage. Moreover, the power from these gas-plants will be mainly for industrial purpose,” said state Industries Minister Bansi Dhar Bhagat.
With the Gas Authority of India Limited (GAIL) approving plans to bring gas pipeline to Uttarakhand, the state government had given its nod to a private company to set up 225 Mw gas-based power plant at the industrial town of Kashipur in Kumaon region. Shrawanti Energy Pvt Ltd, a Gurgaon-based company, is setting up the gas-based plant at Kashipur where the GAIL plans to bring gas pipeline from the neighbouring Uttar Pradesh.
But the move to invite Shrawanti Energy had led to a lot of resentment among the Congress party with a group of its MLAs opposing the project alleging that the government accorded industrial status to the company by compromising the interests of the state. “This project must be cancelled as no transparency was shown in the deal,” said Kishor Upadhayay, an MLA from Tehri.
Significantly, the controversy had erupted at a time when the state government is already facing allegations of irregularities in the allotment of some hydel projects to liquor and new companies.
The Congress MLAs also alleged that the government accorded industrial status to Shrawanti Energy due to which the state lost the leverage of getting 13 percent of the free power as royalty. “If this project comes under energy sector, the state will get 13 percent of free power as royalty,” claimed Upadhayay. In addition to this, he alleged that the government also provided a series of sops like stamp duty exemption to the company.
However, Bhagat rejected the allegations saying the plan was approved after a thorough assessment of the gas-scenario in the region.
The power demand in the state, which is presently hovering around 25 to 27 million units, is likely to grow by 10 to 15 percent every year due to rapid industrialisation.
