UP green signal to Bajaj Hindusthan power venture

Uttar Pradesh today gave nod to the power sector foray of India’s top sugar producer Bajaj Hindusthan with a 1,980 Mw coal-fired power plant in Lalitpur district of Bundelkhand region.

The state cabinet meeting chaired by Chief Minister Mayawati approved the proposed project. An MoU will be signed between the UP Power Corporation Limited (UPPCL) and Bajaj Hindusthan here on April 22.

Earlier, the plant was slated to be set up under Case II bidding process. However, it was decided to follow the MoU route for its early start.

The project would entail acquisition of about 1,500 acre land in Mirchwara village, about 60 km from the source of water at Rajghat Dam in Lalitpur.

A consortium led by Bajaj Hindusthan will set up the 3x660 Mw project, while the UPPCL promoted Lalitpur Power Generation Company Limited would undertake initial ground work.

Under the New Energy Policy 2009, the government had adopted both the MoU and Case II bidding route for setting up power projects in the state.

The consortium would provide 90 per cent of the power generated to the state utility at the tariff decided by the regulator, while the rest could be traded in open market.

Besides, the state cabinet has also allowed setting up of 90 Mw thermal power plants at five sugar mills owned by the company, which would collectively generate 450 Mw power. It would sell 90 per cent of the power to the state utility.

Earlier, the company had proposed to set up 5x80 Mw totalling 400 Mw, but later decided to enhance the installed capacity to 90 Mw per unit. These units will attain full steam by 2012.

Bajaj is India’s largest sugar producer and controls 16 mills in Uttar Pradesh.

Meanwhile, Gammon India had also shown interest in setting up a 1,320 Mw thermal power plant at Sandila in Hardoi district.

“We are planning to set up 13 new thermal power plants with the help of the private sector in UP,” UPPCL CMD Navneet Sehgal had earlier told Business Standard.

UP is targetting per capita power consumption of 1,000 kilo Watt hour (KWh) by 2014, up from a dismal 340 KWh at present. The state government is working on a roadmap for attaining generation capacity of 25,000 Mw during the 12th Plan (2012-17).

Some brownfield projects under which generation capacities at existing plants are being enhanced, include Panki, Pariccha and Harduaganj.

“We have identified three sites near Greater Noida to set up plants totalling 3,960 Mw,” Sehgal said. These sites are located in Bulandshahr and Ghaziabad districts.