Cogentrix Project In Final Stages Of Approval: Patel
He was speaking at a function here organised by the state-owned Karnataka Power Corporation Ltd to mark the financial closure of the Raichur thermal power plant's extension programme to set up the fifth and sixth units to generate an additional energy of 420 mw.
Patel urged environmentalists not to oppose the power projects as it would delay the projects. The government had no alternative but to step up power generated by all available means to improve rural life and boost industrialisation, he said.
With the state starved of power, farmers and small-scale industries were the worst hit, he said.
Patel thanked banks and financial institutions who had extended finance to the extent of Rs 1,236 crore for the Raichur thermal power project, which would cost Karnataka Power Corporation Rs 1,545 crore.
He attributed the erroneous policy decision taken by previous governments to extend subsidised power supply as a populist measure for the present ills of the Karnataka Electricity Board and defended the recent power tariff hike.
He hoped the tariff hike would help Karnataka Electricity Board and Karnataka Power Corporation to regain strength financially.
Speaking on the occasion, Power Finance Corporation chairman U Kholi said the corporation's disbursements for power projects in the country during 1996-97 would be Rs 1,000 crore, an increase of Rs 200 crore over last year's disbursements.He said Power Finance Corporation had targeted to increase its sanctions to the power sector to Rs 5,000 crore by the turn of the century.
Kholi made out a strong case for a regular tariff hike to sustain electricity boards. Karnataka Power Corporation Ltd managing director K Jairaj said the financial closure was achieved in six months and this was the first time the corporation had succeeded in securing loans from FIs to execute power projects.
He said the corporation would commission the fifth unit by 36 months from now and the sixth unit by 42 months.