High-level team to negotiate with AES on OPGC expansion

The Orissa government has constituted a high level team to negotiate with the AES on resolving the outstanding issues pertaining to the expansion of unit 3&4 of the Ib Thermal Power Station (ITPS) of the Orissa Power Generation Corporation (OPGC).

The team is headed by the principal secretary, finance and includes secretaries of steel and mines, energy and industry and law departments and chairman and managing director (CMD), Gridco as members.

The team will negotiate with the AES officials in the next round of meeting, for which date has not been finalised yet, sources said. The latest decision of the government follows the meeting of two senior officials of the AES Corporation with the officials of the state energy department on 17 November 2009.

Though Tom Kunde, vice-president (operations), Asia, of AES Corporations had told the media that the discussion was very productive and the company is working very diligently to expedite the expansion work, there was no indication about the commitment for investment from the joint venture (JV) partner who holds 49 percent stake in OPGC.

However, it was decided to have regular bilateral meeting to thrash out the contentious issues for implementing the expansion project. It may be noted, there are some unresolved legal issues between the state government and AES, which are pending before various courts and Company Law Board (CLB).