Odisha may cancel MoU with 3 independent power producers
Bhubaneswar: The Odisha government today indicated to cancel MoUs with at least three independent power producers for tardy progress on their coal-based projects earlier proposed in the state.
“The progress made by Astaranga Power, SPI Ports and KU Projects is not satisfactory. Their memorandum of understanding (MoUs) have lapsed and we are not willing to extend their pacts,” Energy Secretary Suresh Chandra Mohapatra said after attending a review meeting chaired by Chief Secretary G C Pati.
Mohapatra said that the next meeting of the state task force will decide the fate of three independent power producers (IPPs). “We would like them to be off the list as they have not started process of land acquisition”, Mohapatra, said.
According to the review meeting, the state government had originally signed MoUs with 30 IPPs, envisaging a generation capacity of around 37,000 MW. Out of this, pacts inked with Essar Power and Vijaya Power have been scrapped due to unsatisfactory progress on their projects.
Three IPPs – Vedanta Group’s Sterlite Energy, GMR Kamalanga and Jindal India Thermal Power Ltd (JITPL) – have already commissioned their projects. Sterlite Energy was the first IPP to commission its 2400 Mw (4×600) coal-fired plant at Bhurkamunda near Jharsuguda. GMR Kamalanga has put on stream three 350 Mw units of its 1400 Mw (4×350) plant.
Three other IPPs – Ind-Barath Energy (Utkal) Ltd, Lanco Power and Monnet Power were in advanced stage of commissioning their power plants, Mohapatra said adding that the 700 Mw power plant proposed by Ind-Barath is expected to start operations in a month or two.
The state will get 25 per cent of power generated by these plants as its share, he said.
The IPPs have already invested over Rs 32,000 crore on their projects. The projects which have made substantial investments are: JITPL (Rs 4564.26 crore), Monnet Power Company Ltd (Rs 4100 crore), Lanco Babandh Power Ltd (Rs 4850 crore) and Ind-Barath Energy Utkal Ltd (Rs 2954 crore).