Mp Plans New 500 Megawatt Unit At Birsinghpur

Madhya Pradesh State Electricity Board is likely to establish a power-generating unit at Birsinghpur (near Shahdol district) of 500 MW capacity. The new power plant would be funded from Power Finance Corporation (PFC) and Bharat Heavy Electricals Ltd (BHEL).

If the new project takes shape, it would be the exit of the state's power policy matter on independent power projects.

According to sources, while Power Finance Corporation would contribute to 70 per cent of the project cost, BHEL will contribute 5 per cent. The civil wing of BHEL would execute civil works of the project, the sources added.

R S Julania, member finance of Madhya Pradesh State Electricity Board, said, "The project would start in the current fiscal. All the parties have agreed to work jointly on the project. We want BEHL to increase its equity partnership to 10 per cent."

BHEL would provide necessary equipment required for the plant. The collective efforts of Madhya Pradesh government, Madhya Pradesh State Electricity Board and PFC have brought down the cost of the project significantly.

Earlier, a Russian company Technoprom had offered to establish the plant at Rs 5 crore for each MW. But Julania said the project could cost only Rs 3.5 crore per MW and would enable the state electricity board to save Rs 750 crore. He refused to disclose the exact estimation of the cost of the project.

On financial arrangements, he said, "The board has made arrangements for Rs 200 crore. We already have obtained the permission of the Center and the state governments."

He added that the project would not face any difficulty regarding coal supply and other infrastructure, since it would be an extension to the existing 800 MW Birsinghpur power plant.

Sources said the state government was exploring the possibility of setting up power plants through independent power projects, even as companies from China and Russia had offered proposals to set up power plants in the state.