Though a decision on these projects was taken earlier nothing much could be done as the election code of conduct became effective in the state, said government officials. This has now been lifted and the board will send the letters of intent to the companies.

Over three years ago, the state had invited tenders for setting up seven liquid-fuel based power projects to be set up in the Maharashtra Industrial Development Corporation (MIDC) area.

Of these, a decision on six locations was made last July. The companies, which were awarded the projects, were Larsen & Tourbo (Sinnar and Mahad), which had stated a fixed cost of Rs 1.82 per unit, Ashok Leyland & Fiat(Kagal in Kolhapur) with tariff of Rs 1.90 per unit, the Natelco-led consortium (Ranjangaon, near Pune) with tariff of Rs 1.85 per unit, the consortium of Deccan Conical, Malaysian Shipyard & Engineers (Chincholi Kate, near Solapur), which will charge Rs 1.70 per unit, and Ispat with P&T Industries (Wai near Satara) which has quoted Rs 1.88 per unit.

A decision on the seventh location, Waluj, was put on hold. Though a consortium of GEA Energy System (India) Ltd, TNB Engineering and Consultancy SDN BHD of Malaysia was initially selected by the MSEB, the energy department wanted more details from the developers. This included an update on the financial status of these companies.

The issue has been referred to the high power committee which comprises the secretary of state as well as secretaries of other departments such as finance, industry and power.

The final decision on these projects will now be taken only once the new government takes charge, said officials, adding that the issue may be discussed atthe cabinet level.

The proposals for these small projects were invited with a view that due to shorter gestation period, these plants will be able to provide a quick solution of power shortage in the state. They were intended to primarily cater to the power requirement of the surrounding areas. This would reduce the investment on transmission system.

BSES, which is a licensee, plans to set up the project to meet consumer demand in its own distribution area. The company already operates a 500 mw coal-based power plant at Dahanu in Maharsahtra. The power company plans this capacity addition to cater to future demand. But as the liquid fuel- based power plant will take around three-four years to start commercial production, construction has to be started now, the company says.