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| KPCL to form power JV with BHEL |
| BS Reporter / Chennai/ Bangalore Jan 06, 2009, 00:34 IST |
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The Karnataka Power Corporation Limited (KPCL) and Bharat Heavy Electricals Limited (BHEL) will partner financial institutions to float a joint venture (JV) company this month to take up power generation in Karnataka.
Under the partnership, the KPCL-BHEL combine will own 52 per cent (26:26) stake in the JV with the balance being offloaded to financial institutions. The company proposes to take up two projects with a combined power generation capacity of 1,980 Mw, Karnataka’s minister for power K S Eswarappa, said on Monday.
“The JV company is yet to be named. It will take up two power projects in Raichur district for producing 660 Mw in Edlapur and two units of 660 Mw each in Yeramarus,” Eswarappa said. “We are working out the total investment needed for these two projects with the Union power ministry officials. The costs will be finalised soon and the new company will be floated on January 12.”
This public-private partnership model was tried out in Tamil Nadu earlier. The Tamil Nadu Electricity Board (TNEB) has partnered BHEL and financial institutions to set up a similar JV, K Jairaj, principal secretary — power, Karnataka government, said.
On development of other power projects in the state, Eswarappa said, “The 200 Mw Gundiya power project with an investment of Rs 800 crore and 220 Mw power generation unit at Shivanasamudram on an outlay of Rs 600 crore have obtained Environment Impact Assessment (EIA) clearance.”
The state government will finalise the NTPC’s Kudgi power project on January 12. A total of 4,000 Mw is to be generated here of which Karnataka’s share will be 3,000 Mw. The government has taken initiatives to meet power shortfalls during the summer months, Eswarappa said.
“To tackle the power shortage during summer, a supply of 450 Mw at Rs 8.85 per unit from private power producers like Jindal and GMR will continue for a few more months. Besides, after clearing their dues, sugar mills have agreed to sell power to the state grid. About 200 Mw will be available from them,” Eswarappa said.
“Since prices of raw materials (naphtha and coke) used in power generation has fallen, we are negotiating with power producers to reduce rates,” he added.
Karnataka’s total power demand is currently 10,200 Mw. Current generation capacity is 8,500 Mw with 1,100 Mw being the central power grid’s share. To bridge the shortfall, the government has resorted to buying 450 Mw of power from private power producers and another 200 Mw from co-generation sugar mills.
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