Promoters of the 1,000 mw Mysore Power Gen Ltd's thermal project at Chamalapur have sought six months more time for financial closure from the date they receive Union government approval for release of water from the Cauvery Basin.
Although the promoters had received the approval from the state government for release of 1.03 TMC of water per annum from the downstream of Kabini Dam, the water dispute had held up the clearance from the Centre.
The earlier deadline for financial closure by IPPs was March 31, 1998.
A spokesperson for the company said the promoters had written to the state government to press the Centre to seek necessary approval for release of water from the Cauvery Basin following the recent tripartite agreement on the river water dispute.
"Now that the dispute has been settled, we don't think there will be any delay in receiving clearance for release of water," the spokesperson said.
The project cost, which was initially estimated at around Rs 4,000 crore, has shot up to Rs 5,000 crore on account of delays, the spokesperson said. While the promoters will bring 30 per cent of the total cost of the project, the rest will be through financial institutions. The project is a joint venture between the US-based Public Power International and Malaysian entrepreneur Kotek Abadi. The spokesperson said the equity arrangement between the two would be worked out once all the clearances are in place.
On to the break-up between Ansaldo Energia and Mysore Power Gen, the spokesperson said the promoters may not seek more partners for setting up the power project. "
It is not necessary for us to seek any more partners. We are capable of going alone," the spokesperson said.
Ansaldo Energia withdrew from the project following a report from its consultants KPMG which found fault with the ownership structure of the power company. Ansaldo is also understood to have taken exception to the high price of equity demanded by the company.
Chamalapur power project is among the four 1,000 MW power projects expected to come up in Karnataka. While one of them is a hydel project planned at Almatti in Bijapur, the rest are thermal-based project.
The project has already received clearance from the Ministry of Environment for 500 MW and it hopes to receive clearance for 500 MW more. The promoters have also written to the Centre to allow it to import coal.
The land to the extent of 2,136 acres has already been identified at Chamalapur, around 40 km from Mysore. The promoters are required to pay 40 per cent of land cost to Karnataka Industrial Area Development Board.
Chamalapur power project is among the four 1,000 MW power projects expected to come up in Karnataka. While one of them is a hydel project planned at Almatti in Bijapur, the rest are thermal-based project.
