Seven IPPs await clearance

Orissa is awaiting high level clearance for 7 pending projects proposed by Independent Power Producers ( IPPs) and also state-run undertakings.

These include a 2000 Mws project to be set up by the country's premier power producer National Thermal Power Corporation (NTPC) at Jharsuguda. Projects worth over Rs 1000 crore will have gone in for high level clearance as per the state norms.

The process for clearance of these projects will be adopted after September 20, when the current tenure of election code of conduct rules expires. Currently, there is a temporary ban on the clearance of all projects under the state election commission rules because of municipality polls.

Once the projects are cleared by the state high level clearance authority ( HLCA), under the chairmanship of chief minister Naveen Patnaik, the government will be signing a fresh round of 7 MoUs with these IPPs taking the tally to 20 MoUs in the power sector.

Orissa signed MoUs with 13 IPPs in 2006 for generation of over 16,000 Mws of power in the state by 11th Plan. Latest reports on the status of these plants show that some are still stuck up in land acquisition, water supply and even coal linkages. With standing linkage committee ( SLC) meeting on coal being postponed for the past five months, it has turned out to be a problem for these power projects.

Meanwhile, the task force on the state power sector has decided not to allow new power plants to be set up at Angul and Dhenkanal due to paucity of land and water. These are the two strategic districts for sourcing in coal from the Talcher and Ib Valley coalfields of Mahanadi Coalfields Limited ( MCL). In that case, the 7 power plants awaiting hlca approval will have to find other alternatives.

Energy department sources said, quite a few proposed IPPs have also not made their financial closures and applied for 'open access' to avoid bottling of power and wheeling out to beneficiaries in north and western India. In that event, Power Grid Corporation ( PGCIL) is also to make its intention known about setting up two high power transmission lines from the Orissa to Madhya Pradesh and Punjab. Says an energy department official, “currently everything is stuck up in the power sector. We expect some movement after September 20."