In order to strengthen the power generation in the state, the Uttar Pradesh government is in talks with the Japan International Cooperation Agency (JICA) for funding of its forthcoming 2×660 MW Obra C power plant in Sonebhadra. A JICA team was in Lucknow on Wednesday for preliminary survey of the project and spoke with senior officials in this regard, according to a state government official.
Talking to FE, an official said that the project will require around 300 acre, which is already available with the state government. ?We already have the land and it does not entail the accompanying issues of land acquisition and R&R. We are trying to convince the JICA team to fund this project, which will be developed at a cost of Rs 11,000 crore. If they agree to fund it, we would repay the soft loan at an interest rate of 2% over 20 years,? he said.
The JICA team, which is weighing funding of various infrastructure projects in India, was told by officials why Uttar Pradesh needs the funding more than any other state.
?While in other states, such as Maharashtra and Gujarat, power is needed to boost industry, in Uttar Pradesh, the socio-economic dimensions of the availability of power are enormous. Power availability, especially in the rural areas, will boost the rural economy and thereby create jobs. The economic benefit is thereby passed on to the masses,? one of the officials of the state government told the JICA team.
?If there is an opportunity for JICA to offer assistance, it should be used for the larger public welfare and not limited to commercial gain,? the government official added. ?Since this would be a pit-head project, the cost of generation would be low and cheaper electricity can be made available to the people?.
JICA officials have asked the state government to provide them with profit and loss statements of the other power projects in Obra (Obra A and Obra B) to help them make a decision.