BoA to mull Mundra SEZ proposal for hiking power capacity

The Board of Approval (BoA) in the Commerce Ministry will again take up, on June 2, the proposal of Mundra Port and SEZ for almost doubling the power generation capacity at its sector specific special economic zone at Kutch in Gujarat.     

The BoA, headed by Commerce Secretary G K Pillai, had on February 23, 2009 deferred the decision on the request from Adani Power, the promoter of the Mundra Port and SEZ, for increasing the generation capacity to 5,040 Mw from 2,640 Mw approved earlier.

The BoA asked the developer to come back with a clear plan for power utilisation since the current utilisation was very low.     

The proposal will again come up for consideration of the BoA. It is also supported by an indication from the Gujarat government showing projection demand for 10 years from the potential users. The projected demand add up to 5,200 Mw.     

"The request of the developer is submitted for consideration of BoA," according to the agenda document of the BoA meeting. The developer has given justification for raising the generation capacity stating the economic slowdown has resulted in reduction in the price of power plants and lower capital expenditure.

Among other justifications, Mundra Port and SEZ said that since power generation projects have long gestation period, planning for the same is required to be done well in advance.     

The firm has also proposed to sell power to other SEZs in the region.The BoA will take up proposals for setting up 17 new SEZs, including those of Larsen and Toubro, Emaar MGF and Gulf Oil Corporation     

It will also take up request from the realty major DLF for de-notification of their for IT SEZs in Gujarat, Haryana, West Bengal and Orissa.