IPPs invest Rs 29,308 cr on projects in Odisha

Sterlite Energy is first IPP to have gone on stream having fully commissioned its 2400 Mw plant at Bhurkamunda

Independent power producers (IPPs) have invested Rs 29308 crore on their proposed coal-based projects in Odisha.

The promoters who have spent substantially on their projects are Sterlite Energy Ltd (Rs 8038 crore), GMR Kamalanga Energy Ltd (Rs 5,848.62 crore), Lanco Babandh Power Ltd (Rs 4214 crore), Monnet Power Company (Rs 3200 crore) and Jindal India Thermal Power Ltd (Rs 2,893 crore) and Ind Barath Energy (Utkal) Ltd (Rs 2150 crore).

The state government has signed memorandum of understanding (MoU) with 29 IPPs with combined generation capacity of 37440 Mw with the state share being 6,141 Mw.

Sterlite Energy is the first IPP to have gone on stream having fully commissioned its 2400 Mw plant at Bhurkamunda near Jharsuguda.

GMR Kamalanga has commissioned two 350 Mw units of its 1400 Mw power station at Kamalanga in Dhenkanal district.

Monnet Power which has proposed 1,050 Mw power project at Nisha near Angul, has completed boundary wall construction. Work on 400 KV transmission line is in progress.

Similarly, Ind Barath Energy (Utkal) Ltd has also completed construction on the boundary wall at the site of its 1360 Mw plant at Sahajbahal near Jharsuguda. The power producer has secured coal linkage for 700 Mw.

Recently, the state government signed fresh agreements with the government are Ind-Barath Energy (Utkal) Ltd, NSL Nagapatnam & Infratech Pvt Ltd, Maa Durga Thermal Power Company Ltd, Visaka Thermal Power Ltd and Monnet Power Company Ltd.

Their lapsed MoUs have been extended keeping in view the strides made in implementation of their coal-fired power plants. The new MoUs are valid for a period of two years from the date of agreement. New MoUs were signed after the law department opined that lapsed MoUs cannot be renewed retrospectively.

According to the fresh MoUs, the IPPs cannot dilute their stake holding to below 51% for at least three years from the date of commencement of their operations. Also, any stake sale beyond this lock-in period will need prior permission of the state government.

The IPPs have to comply with the mandatory clause to promote employment among locals. The clause stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in skilled category and 30% for the supervisory and managerial cadre while giving them the option to fill up the post of senior executives from the open market.