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| Bhel, MP join hands for 1,600 Mw power project |
| Shashikant Trivedi / New Delhi/ Bhopal Jan 29, 2010, 00:00 IST |
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With his oft-repeated complaint of “snail’s-pace” progress on the part of Bharat Heavy Electricals Limited (Bhel) and “tardy clearance” process of state power projects by the Centre, Madhya Pradesh Chief Minister Shivraj Singh Chouhan today once again joined hands with the Bhel for another 1,600 Mw thermal power project.
For the second time, the BJP government has named a power project after a seer, Dada Dhuni Wale Khandwa Power Ltd. Dada Dhuniwale, originally known as Swami Keshvanandji Maharaj, was a popular seer, who used to sit before Dhuni or holy fire, so he is remembered as Dada Dhuniwale. Earlier also, the BJP government named another thermal power project after a saint.
The Rs 8,000-crore project will be based on super-critical technology and will be completed within 42 months from now in Khandwa district. It will come up in the close proximity of another project Saint Singaji Thermal Power project.
Madhya Pradesh Power Generation Company Limited (MPPGCL) and Bhel today signed a deal in this regard.
“Central government should put state power projects on top priority without any political bias, I hope unlike other projects the Bhel will complete the project within schedule,” Chouhan said.
Union heavy industry minister for state, Arun Yadav assured the CM of looking into inordinate delay issues pertaining to power projects in the state.
Although details of funding arrangements, etc is yet to be decided, a highly placed state government official told BS, “Bhel and the state government will be equal equity partners in the project which will have 20:80 debt equity ratio. We will shell out Rs 800 crore and an equal amount will be shared by Bhel. The joint venture company will go to market, bankers, financial institutions to mop up the rest of the funds.” Details of site, land allocation and number of household or families likely to be rehabilitated is yet to be surveyed. The project is estimated to need 1,500 acres of land.
While a senior Bhel official said the equity would be diluted so that stake of both Bhel and MPPGCL is reduced to 26 per cent each and the balance equity of 48 per cent is subscribed by financial institutions and bankers.
Thus, in its project cost of Rs 8,000 crore in 20:80 net equity ratio, the Bhel and MP government will hav to shell out Rs 400 crore (approx) each.
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