2010: A defining year for UP's power sector

11,000 Mw power, Rs 50,000 crore investment planned.

The year 2010 can be considered a defining year for the laggard power sector in Uttar Pradesh with ambitious capacity additions planned and actually set in motion by the state government by roping in private partners.

Taking forward its agenda of ensuring 24-hour uninterrupted power supply by 2014, the state government this year signed Memoranda of Understanding (MoUs) with Lanco Infratech, Neyveli Lignite Limited, Bajaj Hindusthan and others for setting up thermal power plants, totaling to almost 10,800 Mw of power.

The new units are planned all over the state in the next few years and entail investment of over Rs 50,000 crore. At present, the state government has been facing a severe power crunch due to increasing energy demand from the domestic and industrial customers. The power demand-supply gap routinely touches 3,000 Mw in UP, which has been blamed for the low industrial growth in the state belying the huge potential it has.

This proposed addition of 10,800 Mw installed capacity is almost three times the current installed capacity of all the state power utilities standing at 4,000 Mw and over four times the actual generation at 2,600 Mw.

India’s largest sugar producer Bajaj Hindusthan alone proposes to add 4,410 Mw by 2015. It has signed MoUs with UP Power Corporation Limited (UPPCL) for setting up thermal power plants at Bargargh, Chitrakoot (1,980 Mw); Lalitpur (1,980 Mw); and cogeneration of 90 Mw each at 5 of its sugar mills totalling 450 Mw.

On November 30 this year, an MoU was signed with Neyveli Lignite Limited (NLC) for a 2,000 Mw power plant at Ghatampur, Kanpur. The project is estimated to cost Rs 10,000 crore and entail acquisition of 2,500 acres of land. MoUs were also signed with Lanco Infratech for setting up a 1,320 Mw unit at Bhoganipur (Ramabai Nagar district); 1,320 Mw at Fatehpur; and Anpara C project under Case II bidding for 660 Mw.

Other MoUs were signed with Parekh Aluminex for 250 Mw plant at Fatehgarh district; Creative Thermolite for 600 Mw plant at Bargarh; and Unitech Machines for 250 Mw unit at Dibiapur, Auraiyya.

Besides, some of the earlier planned units had started generating power, including Reliance Power promoted Rosa thermal power plant and one unit of Lanco at Anpara C.

According to the agreement, the state government will get majority of the power generated from these units subject to the tariff approval of the central electricity regulatory commission.

If the things work out as planned and taking into consideration tasks lined up for 2011 and beyond, UP would become energy surplus by the end of the next 12th Five Year Plan. The state government has envisaged a total power generation capacity addition of 25,000 Mw between 2012 and 2017.