|
New
bagasse-based power policy not to offer cover for forex risk
Our
Political Bureau
Mumbai, Aug 8: The Maharashtra government,
in view of the lesson learnt from the ongoing Enron crisis,
in its new policy for the promotion of bagasse-based power
projects, has decided not to offer cover for foreign exchange
fluctuations and a pass through facility for the sugar cooperatives
for the use of traditional fuel instead of bagasse due to
its non-availability.
| DF
committee meet on August 15 |
| THE coordination committee of ruling
Democratic Front will meet on August 15 to decide the
terms of reference of a judicial probe into the Dabhol
deal. Chief minister Vilasrao Deshmukh, who welcomed the
Supreme Court ruling directing the Mumbai High Court to
decide the issue of jurisdiction of MERC, said that his
government is firm on institution of a judicial commission
to inquire into matter. |
Maharashtra, with a record number of around
130 sugar cooperatives, has a potential to generate 1,200
mw of power through bagasse-based power projects.
The government’s policy, which has a specific intention to
avoid free lunches in future, envisages that the sugar cooperative
will have to share cost for the evacuation of power alongwith
the Maharashtra State Electricity Board (MSEB). The sugar
cooperative will have to contribute Rs 3 lakh per mw with
the MSEB for the installation of evacuation line as the rest
expenses will be borne by the board.
Chief minister Vilasrao Deshmukh, after the cabinet clearance
for the policy, said that henceforth, the sugar cooperatives,
if they propose to form a separate venture for this purpose,
would have to float tenders for the selection of a promoter.
The sugar cooperatives would have to ink a memorandum of understanding
with the promoter for the setting up bagasse-based project.
Mr Deshmukh said that the policy, which has been formulated
after consultations with the federation of sugar cooperatives
and other agencies, will be submitted to the Maharashtra Electricity
Regulatory Commission (MERC) for its approval.
“According to the 1997 policy, the sugar cooperative was entitled
to get a cover during the repayment of loans for 5 per cent
fluctuation in the foreign exchange. However, this will not
be possible in future,” he added.
According to the policy, the per unit tariff would be fixed
at Rs 2.25 based on 1994-95 rates. During the first 10 years,
there will be a 5 per cent cumulative tariff rise, while for
the rest three years, there will not be any increase. However,
for the balance seven years, there will be 5 per cent cumulative
increase in tariff. MSEB will have to purchase power at the
tariff fixed by MERC from time to time.
MSEB would not have to offer letter of credit or escrow facilities
to the promoter for the payment of their bills. Further, the
board would not charge any fine if under certain circumstances
the promoter fails to supply necessary power supply to MSEB
as per the power purchase agreement between them.
The promoter would be entitled to sell power to third party.
So far the state government has cleared nine proposals for
the setting up of bagasse-based projects on the basis of the
old policy.
|
