CSEB Signs MoU With NTPC On Power Project

Mumbai, October 22: | Updated: Oct 23 2002, 05:30am hrs
The Chhattisgarh State Electricity Board (CSEB) has entered into a memorandum of understanding (MoU) with the state-run National Thermal Power Corporation for the 2,000 mw of pithead thermal power project and the power generated from the project would be exclusively provided to Gujarat, Delhi and Punjab by pooling in their resources. In addition to this, CSEB, which has the installed capacity of 1,360 mw, has also inked MoU with L&T for 2 X 287 mw, Jindal - 2 X 275 mw, Gujarat - 500 mw and BSES -25 mw.

CSEB chairman Gopal Tiwari told FE on Tuesday at the sidelines of an exhibition organised by India Tech Foundation that the CSEB would get wheeling charges while the state government would recover royalty on coal and water cess from these agencies. He said that the state government was also negotiating with these agencies for getting 2 to 5 per cent of power free of cost for making available the infrastructure for the implementation of these projects.

Mr Ajay Singh, Chhattisgarh energy secretary said that the CSEB would carry out 2 X 210 mw thermal power project by 2006-07 and 500 mw of project by 2009. The CSEB will spend Rs 3,500 crore for setting up of these projects mainly through internal resources. It has no plans yet to approach market, he added. Mr Singh said that the Canadian agency has approached the state government for providing assistance in the form of a grant for capacity building. The Canadian agency has not yet spell out the exact amount. We will soon sign a MoU in this regard, he added.

According to Mr Tiwari, the CSEB has got an excess power of nearly 100 to 150 mw but not selling to any state in view of unscheduled intercharge under the availability based tariff. He said that CSEB has so far invested over Rs 200 crore on strengthening transmission and distribution network and would incur another Rs 150 crore for the same by June 03.

Mr Singh said that CSEB has set a target of reduction of current transmission and distribution losses of 32 per cent to 27 per cent by March 2004. The government has already notified the formation of a three member Chhattisgath Electricity Regulatory Commission and it is in the process of appointment of these members, he said. According to Mr Tiwari, the state governments policy for the promotion of captive power generation for the new industries and existing industrial units going in for expansion has received overwhelming response.