UP govt asks for more power from central projects

Written by Deepa Jainani | Lucknow | Updated: Apr 1 2010, 03:50am hrs
Even while two central PSUs, NTPC and Neyveli Lignite, are awaiting the Uttar Pradesh governments nod to kick-start two ambitious power projects in the state, the Mayawati government is adamant that a power-deficit and land-locked state like UP should be given a higher power allocation from central projects in the state and a priority in the allocation of coal linkages for its existing projects before it commits to any other projects.

In response to the NTPC planning to set up a 1,000-mw thermal power plant in Bilhaur district and Neyveli Lignite, a 2,000-mw plant in Ghatampur, near Kanpur, permission for which has been sought from the state government, officials of the Uttar Pradesh Power Corporation (UPPCL) state that while the moves of these central PSUs is welcome, the state wants a higher allocation of electricity that will be produced in these power plants.

Looking at the enormous deficit that the state is facing and the fact that its population far exceeds any other part of the country, the Centre should allocate more power to UP than what has been laid down under the Gadgil formula. After all, if the Centre can bend rules and allocate 100% power of Simadri project to Andhra Pradesh, it can also do so in UP. In fact, not even 75% of the power is being pledged to us from any central project that is being offered to the state, said an official of the UPPCL requesting anonymity.

Indeed, one reason for the state government to go slow on the central projects is also the delay by the coal ministry to allocate coal blocks for the existing power projects in the state.