AES-Orissa talks fail to resolve tricky issues

The senior officials of the Orissa government today held discussion with a team of officials of AES to thrash out issues obstructing the proposed expansion of Ib Thermal Power Station (ITPS) at Jharsuguda, comprising establishment of 3rd and 4th units of the station with capacity of 660 Mw each.

Though no final decision has been taken in today’s meeting, both the partners expressed their resolve to thrash out the contentious issues in the second meeting to be held shortly. This is the first meeting between the senior officials of the state government and AES after the submission of report by the Task Force, which was constituted by the state government to recommend measures for expediting the expansion work.

Talking to the media after the meeting Tom Kunde, vice-president (operations), Asia, of AES Corporations, said, today’s discussion was very productive. The company is working very diligently to expedite the expansion project. As a measure in that direction there will be regular meeting between the partners. Asked when the construction of the proposed expansion will start, Kunde did not give any time line.

Venu Nambiar, vice-president, AES said, the company intends to expedite the project within a time frame. The state government and AES are working together to resolve various issues, he added.

State energy secretary Pradeep Kumar Jena said, the next meeting will be held shortly to resolve various issues. He said, all the issues pertaining to the expansion was discussed and it was decided to resolve them bilaterally at the earliest possible time. The next date will be finalised within a week.

During the discussion, the AES team was apprehensive about the fuel security and they were told that the project has been allotted coal mines and coal linkage can be arranged for the interim period. On floating the EPC tender for the project, Jena said, both the partners will be able to take a decision on it very shortly.

It may be noted, the proposed expansion will cost about Rs 7500 crore with a debt equity ratio of 80:20. Out of the Rs 1500 crore equity, about Rs 1100 to Rs 1200 crore is proposed to be generated by OPGC from internal sources with the remaining Rs 300 crore to Rs 400 crore coming as promoters’ contribution.

Meanwhile, Orissa Power Generation Corporation (OPGC) today inked a fuel security agreement with the state owned Mahanadi Coalfields Ltd. (MCL) for supply of coal to the unit-1 and unit-2 of Ib Thermal for 25 years.