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Punjab, Haryana to get 1,950 MW power
Manoj Kumar
Tribune News Service

New Delhi, October 9
Punjab and Haryana will get 1,950 MW of power from two ultra-mega power projects, being set up by private players in Madhya Pradesh and Gujarat under the initiative of the Union Power Ministry and which are expected to be commissioned by 2012.

In this regard, power purchase agreements (PPA) were signed by Punjab and Haryana, along with Delhi, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Uttaranchal, with Sasan Power Ltd and Coastal Gujarat Power Ltd here today.

These states will also get power from the two projects with a capacity of 4,000 MW each.

The agreements assume significance as the Power Ministry has taken the initiative within a day after Prime Minister Manmohan Singh expressed concerns about reforms in the power sector during his address at a conference on Infrastructure in New Delhi yesterday.

Under the PPA, Punjab will get 600 MW from Sasan and 500 MW from Mundra power projects, and Haryana will get 450 MW and 400 MW, respectively, from these projects.

Both states are expected to get 500 MW and 400 MW from another ultra-mega power project to be set up later in Orissa.

PSEB Member (Generation) H.M. Jain, who signed the PPA on behalf of Punjab, told The Tribune that power from these coal pit-based power projects would provide a major relief to the state in the coming years.

The rates are likely to be competitive as compared to power purchased by states from the eastern states during peak season, he said adding that the state would provide Rs 1 crore per 100 MW in the escrow account to be set up to ensure commitment in the project.

Haryana Power Generation Corporation SE V.K. Goel, who signed the PPA on behalf of Haryana, said: “We are expecting to get power at around Rs 2 a unit besides the carriage charges. Since the state is facing acute shortage of power amounting to around 1,000 MW — and with the development around Delhi region the demand is likely to go up — the agreement will help the state boost the growth in neighbouring towns around the Capital.”

“The initialing of PPAs for 8,000 MW capacity addition through tariff-based competitive bidding marks the beginning of a new approach to capacity addition, which will facilitate private investment at a faster pace and provide power at a competitive rate,” said Union Power Minister Sushilkumar Shinde on the occasion.

Under the initiative of the Power Ministry, Power Secretary R.V. Shahi said: “We have invited bids from domestic and foreign private companies to set up ultra-mega power projects in Madhya Pradesh (Sasan), Gujarat (Mundra) and AP (Krishnapathnam), besides in Orissa and Tamil Nadu.”

The bidding process for Sasan and Mundra projects will be completed by the year-end, and in the next five years the projects are expected to be commissioned, thus providing a major relief in the beneficiary states.

He said state-owned Power Finance Corporation has set up two subsidiaries, which will get the clearances regarding environment, land acquisition, allocation of coal blocks, and later sell these to private players on the tariff-based bids.

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