Odisha, Andhra to set up Sileru hydro power project jointly

Odisha and Andhra Pradesh governments have decided to jointly construct a hydro-electric project of 60 mega watt (MW) capacity across the Sileru River at Chitrakonda in the Maoist-infested Malkanagiri district in south Odisha. The 30 x 2 MW project is estimated cost around Rs 350 crore.

The cost of the project and also the power generated from it would be shared equally between the two neighboring states. This was decided at a high level meeting between the officials of the two states held at Hyderabad, recently.

"In fact the proposal was long-standing. Now we have decided to construct the project jointly," Odisha energy secretary, Pradip Jena, said. The draft agreement is likely to be prepared soon for approval by both the states before commencement of work, sources said.

Chitrakonda, very close to the Odisha-Andhra Pradesh border, is a densely forested area, where the Maoists have been active for past many years.

Besides the setting up of the new project, both the states have agreed to renovate and modernise the existing Machhakunda hydro electricity plant, another project located on the border, at a cost of around Rs 300-crore.

After renovation of the 120 Mw Machhakunda project, the power generated from it would be shared equally by the two states, which will contribute to the cost towards the renovation and modernisation work.

At present 70 per cent of the power generated by the hydel plant goes to Andhra Pradesh with Odisha getting the remaining 30 percent. The Odisha has been demanding equal share of power from the project for long time. "The over 50-year-long dispute between the two states over sharing of power from Machhakunda plant has now been solved with both the states agreeing to the formula of drawing same amount of power from the station," energy secretary said.