New Delhi, Feb 12: With the exit of Israeli company, Eisenberg, from the Rs 3,000-crore, 700 MW Yamunanagar power project in Haryana, the power ministry is exploring the possibility of National Thermal Power Corporation (NTPC) joining in as the new joint venture partner.Highly placed official sources told The Financial Express that the nodal ministry has called an urgent meeting of senior state officials with NTPC big wigs later this week, in order to have deliberations on the issue.
Ministry officials said in case NTPC is not willing to join as partner with the state government then the project will be open for private sector participation. It is learnt that the Haryana government has decided to float fresh international tenders for shortlisting technical and financial consultants for the project.
Officials said soon after Eisenberg's exit, NTPC has been exploring the possibility of taking up the joint development of this project with the state government. However, following differences on ahost of issues, including the power purchase agreement (PPA) and other commercial arrangements, the project was stalled.
"This meeting will decide whether or not NTPC and Haryana can sort out these issues and work as partners. The project was originally with NTPC, but in 1988 it had to give it to the Haryana government as the power corporation was facing a serious cash crunch," sources added.
NTPC chairman Rajender Singh confirmed the meeting taking place with the ministry but refused to comment on the nature of discussion.
"We still have to weigh all options before NTPC joins in as a partner. I can't comment at this stage because we have to first see as to what's on the offer for NTPC and only after the meeting will I be able to say as to whether we will go ahead or not," added Singh.
Eisenberg was to take up the development of the power project and had even signed a PPA with the Haryana State Electricity Board (HSEB).
Eisenberg's initial plan was to set up a 1000 MW unit but the project wassubsequently scaled down by two units of 350 MW each. It had also obtained techno-economic clearance from the Central Electricity Authority (CEA) but following a change of government in the state, it was asked to scale down the power tariffs.
However, the negotiations fell through and Eisenberg moved to Delhi High court, filing a case against the Haryana government. The Israeli company is now reported to have withdrawn the case as the price of hanging on, in terms of cost of litigation and manpower, was turning out to be too high. Eisenberg, it is learnt, has still kept the options open of suing HSEB for damages.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
