Goa To Set Up LNG-based 1,000 Mw Power Project

Goa, Sept 19: | Updated: Sep 20 2003, 05:30am hrs
The government of Goa has drawn up plans to set up a 1,000 mw liquified natural gas (LNG) based mega power project to be set up as a joint venture with a leading private player. Under the mega power project policy, the promoter gets customs duty exemption and would be entitled to sell 25 per cent of the total power inter-state.

Goa power minister Digambar Kamath told FE on Friday that the entire power from this project would be exported out of the state as Goa is meeting its power requirements of 300 mw from NTPC as also power from the southern and western grids.

Alongside, Mr Kamath revealed that the Goa government is also planning to set up a special economic zone (SEZ) in the state and the power project would be in the SEZ area. These plans will however take some time as the proposals are at a preliminary stage, he added.

The Goa state cabinet, he said, has recently given its approval for setting up a special economic zone (SEZ) and an international airport in the state. The SEZ is proposed to be built on an area in excess of 1500 acres in Goa.

The department of power, Goa, is presently purchasing power at an average rate of around Rs 1.40 per unit and is selling to domestic consumers at around Re 1 per unit.

The power sector in the state is currently controlled by the electricity department. As a result, all revenues from the sector flow directly into the consolidated fund. Since the state does not own any generation stations, it is, per force, dependent on supply from states such as Maharashtra for meeting both its requirements. Consequently funds for power purchase is accounted as revenue expenditure in the state.

Speaking to FE, power secretary RV Shahi said the Goa government has agreed to corporatise its operations by setting up separate entities. Powergrid has recently set up a 400 kv substation in Goa after which the power supply especially the volatge has improved substantially in the state. Moreover technical losses in the state are also on a decline, added Mr Shahi.

Sources said the state government plans to corporatise the power sector and introduce a regulatory framework within six months.