Odisha not to extend MoUs of 11 IPPs

Says the project developers have not taken enough steps to push their projects ahead

Tightening the noose on frivolous Independent Power Producers (IPPs), the state energy department has decided not to renew MoU (memorandum of understanding) with 11 such players.

"We have decided not to extend MoUs signed with 11 IPPs. They have not taken enough steps to push their projects ahead," said a top official at energy department.

The government decision is set to affect project developers like SPI Ports, NSL Nagapatnam Ltd, Nava Bharat Power, Astaranga Power, Bhushan Energy, KU Projects, JR Powergen and Visa Power to name a few. These entities had signed MoUs with the state government between 2006 and 2011. The state government has inked MoUs with 28 IPPs envisaging a total production capacity of around 37,500 Mw with proposed investment of over Rs 1 lakh crore. Of this, Rs 35,000 crore has already been grounded by IPPs. The state share of power from these IPPs is pegged at 5,887 Mw.

The state's investment promotion agency Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) had recommended extension of MoUs with 10 IPPs. Out of these, five IPPS - Visaka Thermal, Monnet Power, Ind Barath Energy (Utkal) Ltd, Maa Durga Thermal Power and Mahanadi Aban have executed fresh MoUs. Five others - JITPL, CESC Ltd, BGR Energy, GMR Kamalanga and Lanco Power have not renewed their pacts with the state government yet.

Since Vedanta Group firm Sterlite Energy has already commissioned its 2,400 Mw plant, there was no need for extending its MoU. The government was considering the case of extending the MoU of KVK Nilachal as litigations had impeded the pace of its project progress.

For the rest 16 IPPs, the task force on power has recommended scrapping of MoUs.

Apart from Sterlite Energy, GMR Kamalanga has commissioned three 350 Mw units of its proposed 1,400 Mw power plant at Kamalanga in Dhenkanal district. It has invested Rs 5,590 crore.

Jindal India Thermal Power Ltd (JITPL) has put on stream the first 600 Mw unit of its proposed 1,800 Mw plant, at Derang near Angul.