State to sign pact for power

The Karnataka cabinet today approved a proposal to sign an MoU with the Chhattisgarh government to set up a 1,000 Mw thermal power plant in the state to tide over power shortage.

“The cabinet meeting decided that the MoU shall be signed with Chhattisgarh on the Rs 5,000 crore project within 60 days,” Karnataka Minister for Rural Development, Shobha Karandlaje, told a press conference here.

During his recent visit to the city, Raman Singh, Chief Minister of Chhattisgarh, a BJP-ruled state, had promised his Karnataka counterpart that 1,200 acres for the project would be provided at Srivari Narayana, about 170 km away from Raipur. Karnataka plans to expand the unit to 2000 Mw later.

Karandlaje said energy department officials have been asked to work out the detailed project report and added that the plant, when commissioned, would help Chhattisgarh get 30 per cent share of the energy produced.

Yeddyurappa would also consult opposition parties to seek their guidance on the project after his return from the tour of the USA, she said. The power to be produced at Chhattisgarh would cost Rs 2.46 per unit and help Karnataka save Rs 1.34 per unit, following savings on coal transportation costs, she added.