Task force for scrapping of MoUs with 16 IPPs

Worried over the tardy progress made in execution of coal-fired thermal power plants, the state task force on power has recommended scrapping of memorandum of understanding (MoU) signed with 16 independent power producers (IPPs).

In the list of IPPs whose pacts have been recommended for cancellation include SPI Ports, NSL Nagapatnam Ltd, Nava Bharat Power, Astaranga Power, Bhushan Energy, KU Projects, JR Powergen and Visa Power to name a few. These proponents have signed MoUs with the state government between 2006 and 2011.

"The government has not taken any call on the recommendations of the task force on power. A committee has been constituted that will look into the reasons for delay in implementation of such projects by the IPPs," said an official source.

The state government has inked MoUs with 28 IPPs envisaging a total production capacity of around 37,500 Mw with proposed investment of over Rs 1 lakh crore. Of this, investments worth Rs 35,000 crore have already been grounded by IPPs. The state share from these IPPs is pegged at 5,887 Mw.

Three IPPs- Vedanta Group firm Sesa Sterlite, GMR Kamalanga and Jindal India Thermal Power Ltd (JITPL) - have commenced commercial production.

Sesa Sterlite has commissioned its full capacity of 2,400 Mw (4x600) at Bhurkamunda near Jharsuguda. The company has invested Rs 8,038 crore on the plant.

GMR Kamalanga has commissioned three 350 Mw units of its proposed 1,400 Mw power plant at Kamalanga in Dhenkanal district. It has invested Rs 5,590 crore.

JITPL has put on stream the first 600 Mw unit of its 1,800 Mw plant, at Derang near Angul.

The state's investment promotion agency Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) has recommended extension of MoUs with 10 IPPs. Of these five proponents- Visaka Thermal, Monnet Power, Ind Barath Energy (Utkal) Ltd, Maa Durga Thermal Power and Mahanadi Aban have executed fresh MoUs. Five others - JITPL, CESC Ltd, BGR Energy, GMR Kamalanga and Lanco Power have not signed new pacts with the state government.