Cabinet okays Rs 1,000-cr guarantee for Gridco

The Orissa Cabinet has agreed to provide a financial guarantee of Rs 1000 crore to the Grid Corporation of Orissa Ltd (Gridco), the bulk purchaser of power, to enable the corporation to buy power from the captive power plants (CPPs) at higher price to meet the state's power demand.

“The Cabinet agreed to provide a guarantee of Rs 1000 crore to Gridco. There has been a significant gap between the price at which Gridco buys power and supplies it. In 2009-10, the average power purchase price for Gridco was Rs 2.02 per unit while the bulk power supply price was Rs 1.22 per unit”, the state Chief Secretary B K Patnaik told media persons after the Cabinet meeting.

 

He expressed confidence that the situation would improve in the next 2-3 years as a few Independent Power Plants (IPPs) in the state would start operations and the Gridco would no longer need to purchase power from CPPs.The Cabinet also decided to slash the land rent for the Sri Sri University being set up at Naraj near Cuttack. The state government had allotted 146 acres of land to the university and the land rent was pegged at one per cent of the market rate. Now, the land rent has been reduced to 0.25 per cent of the market price. Consequently, the university which had to pay Rs one crore per annum as land rent and cess, would now pay Rs 25 lakh.The Cabinet took this decision considering the fact that Sri Sri University is not a profitable institution and the revised land rent would apply to all educational institutions.

In addition to this, the Cabinet also decided to amend the Orissa Public Premises Eviction Act of 1972.

The Orissa Forest Act, 1972 would also be amended. Under Section 72 of this Act, there is a provision which allows forest officials like divisional forest officers and assistant conservator of forests to seize illegally traded forest goods, the limit being fixed at Rs 100.