Karnataka exploring coal blocks abroad

The Karnataka government, which has drawn up an action plan for adding 6,900 Mw of power capacity in the next three years, is exploring the possibility of importing coal and partnering in joint ventures in other states as well as other countries.

Chief minister B S Yeddyurappa, who presented the budget for 2011-12, said, “The Central government has not been providing coal linkages for new projects to Karnataka. Therefore, to enable the state to produce 7,340 Mw of power, I request the Central government to consider all our pending requests for providing coal linkages.”

By entering into joint ventures in other countries, the state aims to ensure the availability of power needed for the state. Steps have also been taken to purchase power from private power producers to meet shortages, he said in his sixth budget to be presented as finance minister of the state.

The government has sought early coal linkages for the proposed power projects at Yeramarus, Edlapura and Bellary with a cumulative installed capacity of 3,150 Mw. Action has been taken to build power plants at Kudigi, Jewargi and Chhattisgarh with an installed capacity of 6,900 Mw. Land acquisition for Kudigi and Jewargi projects is on.

The distribution companies have signed agreements to purchase power from the Kudigi Power Project, he said.

In respect of Chhattisgarh power plant of 1,600 Mw capacity, final notification has already been issued for acquiring 1,260 acres. An amount of Rs 141 crore has been paid for this.

The government has also initiated steps to facilitate the Gas Authority of India Limited (GAIL) to lay an LNG pipeline from Dabhol to Bidadi. KSIIDC and GAIL have agreed for form a joint venture company to develop a city gas distribution network for Bangalore.

An outlay of Rs 500 crore as equity support to the Escoms is being made for separation of the electricity feeders under the Niranthara Jyothi project. This project is scheduled to be completed by September 2012.

The total outlay of the energy sector has been increased from Rs 6,245 crore in 2010-11 to Rs 8,523 crore in 2011-12.

Energy consumption in the state has increased from 36,118 million units in 2009-10 to 39,774 million units in 2010-11.

During the current year the peak electricity consumption per day has increased to over 160 million units. For ensuring adequate supply to the consumers, the Escoms have purchased 31.2 million units from private producers on short-term basis.

The state government plans to increase the annual per capita availability of electricity from 680 units to 1,000 units within a three-year period.