Odisha to renew MoUs of 7 IPPs

The decision was taken at high-level meet chaired by CM Naveen Patnaik on renewal of lapsed MoUs of IPPs

Coming under attack from the industries for delay in renewal of MoUs (memorandum of understanding) signed with the developers, the Odisha government has decided to extend lapsed pacts of seven independent power producers (IPPs) within two months.

The decision was taken at a high-level meeting chaired by chief minister Naveen Patnaik on renewal of lapsed MoUs of IPPs. The power producers whose MoUs will be extended include GMR Kamalanga Energy Ltd, Monnet Power Ltd, Lanco Power Ltd, Jindal India Thermal Power Ltd (JITPL), Ind-Barath Energy Utkal Ltd, Maa Durga Thermal Power Company Ltd and KVK Nilachal Power Ltd.

"It has been decided that the MoUs of IPPs whose projects are in advanced stages will be renewed. The renewal is expected to be achieved in two months”, said chief secretary B K Patnaik.

Arun Sahu, energy minister said, “The MoUs of seven IPPs whose projects have progressed significantly will be renewed. Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) has already taken stock of their progress at the ground level. The lapsed MoU of Sterlite Energy does not need any renewal since the company has achieved full-fledged production.”

The state energy department had entered into MoUs with 29 IPPs, envisaging a production capacity of around 37000 Mw. Of this only two MoU signed players- Sterlite Energy and GMR Kamalanga had started operations.

Sterlite Energy has commissioned its 2400 Mw coal-fired power plant at Burkhamunda near Jharsuguda.

GMR Energy that has proposed 1400 Mw (4x350) coal-based plant at Kamalanga in Dhenkanal district has operationalized the first 350 Mw unit. The rest three units of equal capacity are scheduled to be commissioned by August 2013.

Similarly, Monnet Power Company Ltd, a wholly owned subsidiary of Monnet Ispat & Energy Ltd, hopes to commission its first 525 Mw unit of its 1050 Mw coal-based power plant in Odisha by September this year.

The power project is coming up at Chhendipada near Angul. Monnet Power had signed an MoU with the state government in September 2006. The MoU envisaged an investment of Rs 4500 crore.

The other IPPs that are expected to go on stream by 2013-14 are Lanco Babandh Power Ltd, KVK Nilachal Pvt Ltd, Ind-Barath Energy (Utkal) Ltd, Maa Durga Thermal Power Company Ltd, Jindal India Thermal Power Ltd (JITPL) and Nava Bharat Power Pvt Ltd.

Ind-Barath's first unit with a capacity of 350 MW is set to go into generation from May 2013 with the second unit of equal capacity scheduled to be commissioned by June 2013. The company has proposed apower station of 1360 MW capacity at an envisaged investment of Rs 6450 crore. It has already invested Rs 2000 crore on the power project.

JITPL that has proposed a 1800 MW coal-based power plant at Deranga near Angul, hopes to commission its first 600 MW unit by December 2013. Having invested Rs 9121 crore, the company is almost throughwith the land acquisition process, taking over 1047.32 acres acres of a total of 1050.16 acres.