Assam asks oil companies to set up power utilities

With demand for power in Assam increasing steadily, Assam has asked the "cash rich" oil companies operating in the state to invest in power generation to help the state tide over an imminent power crisis. The growth in demand for power has even outstripped the growth in the state economy. At a time when the economy of Assam was growing at 7 to 8 per cent, the demand for power has been growing at 12 per cent. The power demand in Guwahati alone, which was just 90 Mw in 2004, is expected to touch 290 Mw in 2010.

Speaking at a conference on "Energy Resources of North-East India," Assam's power minister Pradyut Bordoloi has asked the oil companies to help Assam arrest the power crisis by investing in power generation projects.

"The cash rich oil companies should set aside some of their liquidity for small power generation projects," said Bordoloi. He asked Oil India Limited (OIL) to mull over the earlier proposal by the Assam's power department to set up a gas-based power project in the state in collaboration with Assam State Electricity Board.

Highlighting on the need for environment-friendly power generation, Bordoloi said that the state government would "soon" form a Green Power Development Corporation, which would invest in new and renewable power generation projects in the state.

He said that 2,890 remote villages in the state had been provided with solar lights.

Further, Bordoloi urged Coal India Limited (CIL) to stop open cast mining at Ledo in Tinsukia district in Upper Assam as it was degrading environment by releasing coal bed methane in the atmosphere.

"The coal bed methane is resulting in acid rain in the area. Though we have approached the CIL and requested it not to continue with open cast mining, it's still continuing," Bordoloi said.

The conference was organised by Synergy for Energy, Challenges and Opportunities in North-East India (Secone), a common platform for energy sector companies in the North-East.