The Jaiprakash-Voith Siemense consortium, which is completing the 520 Mw Omkareshwar power project on a turnkey basis, has asked for higher compensation for completing the project in Khandwa district before schedule. | |
| The Narmada Hydroelectric Development Corporation (NHDC), a joint venture of the Madhya Pradesh government and National Hydroelectric Power Corporation (NHPC), which has awarded the contract to the firm, is planning to work out a formula to complete the power project within the 10th Five Year Plan, which expires in March next year, to bring down power tariff from an estimated Rs 3.44 per unit to Rs 2.50 per unit. |
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| According to the agreement between NHDC and the Jaiprakash-led consortium, the latter has to complete the project by October next year. |
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| "We have discussed the matter with Chief Minister Shivraj Singh Chauhan, because the task requires a speedy rehabilitation of 2,700 families if the project is to be completed by March," SK Dodeja, director, NHPC, told Business Standard, adding, "our board will also work out a calculation to compensate the firm adequately since the Jaiprakash-Voith Siemense Consortium has asked for Rs 4 crore per unit per month, which may cost Rs 52 crore to our company. But we want it to bring down to nearly Rs 25 crore. And we hope our partner will complete the project before schedule." |
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| The commission of power-generating units, eight in number, is expected to begin before March next year, and the consortium has to add more technical and human resources. Bharat Heavy Electicals Limited (BHEL) is supplying turbines to the project. |
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| NHDC has already completed the 1,000 Mw Indira Sagar project ahead of schedule and recently the Jabalpur bench of the High Court has permitted the company to fill the reservoir up to 260 metres against the required FRL (full reservoir limit) of 262 metres. |
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| To ensure power from Omkareshwar project the state government will have to speed up the rehabilitation. The project cost has reached Rs 2252 crore in which Central Government and Madhya Pradesh government have equity partnership of Rs 312 crore and 300 crore respectively. |
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| However completion of the project before schedule will not reduce the cost of the project since state government levies a couple of taxes from power projects. |
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