MP frames Pvt thermal power policy

To restrict non-serious private players in power sectors state government today approved a private thermal power policy. The new policy will set up a timeframe for the private players to invest in the state in case of failure the state will withdraw its support and ask them to pull out their proposals. The state government will now entertain only those players will have to be equipped with super critical, ultra super critical, circulating fluidised bed combustion. Carbon sequestration technology or integrated coal technology.

“In most of the cases private thermal power projects are hanging in balance due to lack of seriousness on the part of investors. The new policy will bar non-serious investors,” a government spokesperson told BS.

The new policy will also put a condition before potential investors in private thermal power players to have a networth of Rs 50 lakh per megawatt if the proposal is less than 2,000 MW, if it is for more than 2,000 MW than the networth should be more than Rs 1,000 crore or Rs 25 lakh per Mw of the maximum specified capacity.

The company should also have a turnover of Rs 1.20 crore per megawatt if the proposal is for less than 2,000 Mw capacity in case of more than 2,000 Mw, the turnover should be Rs 2,400 crore or 60 lakh per megawatt of the specified capacity.

“The investor will have to develop the project site, will bear the cost of fuel, acquire land and will inform the state government at each stage. The state government will arrange gird connectivity to the player but the player will have to bear all expenses. The investor will have to sale 10 per cent of the total generation to state government on tariff fixed by state power regulatory commission. The state will reserve first right to refusal of purchase of 30 per cent additional power from the power generated by private player,” the spokesperson said adding, “ the state cabinet has put a cap of 12 months for execution of memorandum of understanding.”

The government has received more than 60 private thermal power projects during the last few years but only a few are progressing. A large number of them either backed or have not given any response.