Madhya Pradesh power MoU policy amended

Rejected power biggies will get another chance to sign deal with Madhya Pradesh, after the re-launch of a policy pertaining to memorandum of understanding (MoU) with these companies.

The government has also allowed foreign direct investment in the state in this new amended policy.

As many as 14 power companies faced rejection as they failed to meet the requirements set before deadline.

“State cabinet has altered the previous policy and has now added an option so that sub-critical and gas based thermal power companies can sign deal with the government,” a government spokesperson said adding, “Super critical machines are normally minimum 660 Mw capacity and they take lot of time for installation while sub-critical machines are easily available and can be installed in less time.”

The state government will sign a deal on condition that it will be binding on the power project developer to sell power to the extant of 10 per cent of the total generation (ex-bus) to the state government at variable cost as approved by Madhya Pradesh Electricity Regularity Commission.

The state government will have the first right to purchase additional power to the extent of 30 per cent of the total generation. The MoU will be valid till 12 months only and within this period the company will have to submit a detailed project report. 65 power companies had signed deal with the state government during the last four years.