Karnataka signs MoUs for 6,900 Mw

The Karnataka government has signed memoranda of understanding (MoUs) with public sector energy major National Thermal Power Corporation (NTPC) and power equipment major Bharat Heavy Electricals Limited (BHEL) to set up new thermal and wind energy projects in the state with a cumulative capacity of 6,900 Mw in the next four years.

NTPC will invest Rs 22,500 crore to set up a 4,000 Mw thermal power station at Kudigi in Bijapur district and 500 Mw wind power plant at six different locations in north Karnataka. Power Corporation of Karnataka Limited signed the MoU with NTPC for the project. The projects will use both domestic and imported coal to run the plants.

Another 2,400 Mw thermal power station is being set up through a joint venture between Karnataka Power Corporation Limited, BHEL and a private player. IDFC has shown interest to be the third partner in the JV.

Three separate MoUs were signed on Monday in the presence of state chief minister BS Yeddyurappa and Union minister of state for power Jairam Ramesh among others.

The MoU marks the entry of NTPC into Karnataka as its earlier attempt to set up a 2,000 Mw thermal power plant near Mangalore in the late 1980s did not materialise. According to the present MoU, NTPC will set up a 4,000 Mw supercritical thermal power plant at Kudigi, about 18 km from Almatti dam at an investment of Rs 20,000 crore in two stages.