State to buy 700 Mw till end of May

The Karnataka government has decided to buy 700 Mw of power from the private sector for May.

The state will buy 500 Mw from Jindal Power and 200 Mw from cogeneration sugar mills at Rs 6 and Rs 5 per unit respectively. The state cabinet took a decision to this effect here today.

Briefing reporters after the cabinet meeting, V S Acharya, minister for home said, “In view of the severe power shortage in the state, the cabinet decided to continue with purchase of power from private producers for another month. We have also invoked Section 11 of the Karnataka Electricity Act, 2003, under which private producers will supply us power.”

He said the cabinet has also decided to invite investment from the private sector to set up three gas-based power projects, amounting to a capacity of 2,100 Mw along the Dabhol-Bangalore gas pipeline which will be commissioned by December 2012. The state has identified Hukkeri in Belgaum district, Mundaragi in Gadag district and Harapanahalli in Davanagere district to set up 700 Mw gas-based power plants each. The detailed project reports will be prepared by December 2010, he said.

The state requires 3.20 million tonne gas per annum for these projects and gas allotment was yet to be done from the Centre, he said adding that Karnataka Industrial Area Development Board (KIADB) will acquire land for these projects.

In addition to these projects, the state-owned Karnataka Power Corporation Limited (KPCL) will set up a 2,000 Mw gas-based power plant at Bidadi, he said.

Acharya said the cabinet also approved the 60-km monorail project for Bangalore city. Tenders will be floated soon for appointment of consultant to prepare the detailed project report for the project. The cabinet also approved the 34-km long high-speed rail link project connecting BRV Grounds to Bangalore International Airport, he said.

The cabinet has also approved 4-laning of the 20-km road between Hubli and Dharwad. The project will be taken up at a cost of Rs 155 crore. While the Centre has agreed to give Rs 100 crore in two installments, the state government will spend Rs 55 crore. Tenders for the project will be floated shortly, he added.

Other major decisions of the cabinet include approval for appointment of senior professors with over 10 years experience as registrars of various universities in the state. The government also plans to take up modernisation and development of minor ports under public private partnership model. To facilitate this, the Maritime Board Bill will be introduced in the next legislature session, he added.