Orissa has received an offer from a state-owned company of China for setting up two thermal power stations of 250 mw each at the Ib valley. These stations will be the third and fourth units of a mega power complex being put up by the Orissa Power Generation Corporation (OPGC) in the valley.

As a part of its divestment, the state government recently sold 49 per cent of its shares in OPGC to the US-based AES Transpower Corporation. The American firm, at present, owns and operates the first two units (210 mw each) of the Ib valley power complex.

Disclosing this in the state Assembly, Orissa power minister Niranjan Patnaik said the Chinese offer outlines participation in the project on a government to government basis. He said China was keen on investing both in equity and soft loan at a low interest rate of 8 per cent. The proposal has been sent for the approval of the Centre.

If approved, this will be the second investment by a state-owned company of China in Orissa. Earlier, the Chinese Metallurgical Import and Export Corporation (CMIEC) had participated in the equity shares of the 1.2 million tonne mild steel project at Duburi in Jajpur district. The project is being put up by the Delhi-based Mesco group under the banner of Mideast Integrated Steel Ltd (MISL).

Patnaik said while OPGC had estimated the cost of the two units at Ib valley at Rs 1,700 crore, the Chinese firm has offer