The Orissa government on Monday entered into Memorandum of Understanding (MoU) with three more Independent Power Producers (IPPs) – KU Projects Ltd, SPI Ports Pvt Ltd and NSL Nagapatnam Power Company Pvt Ltd. This is over and above the 27 MoUs that the state government has already signed with the IPPs.
The total investment committed by these three IPPs is Rs 20469.60 crore and the combined power generation will be 3960 MW. The state would get around 475-554 MW of power from these three IPPS at variable cost (less than Rs 1.50 per unit). Together, the three power projects would generate direct and indirect employment for around 8000 people.
"The MoUs have been signed for setting up of three IPPs in the state. These power plants will be located in industrially backward regions of the state. All the three power plants will adopt super critical technologies. Besides, these IPPs will bring in additional investments in sectors other than thermal power”, said the state Chief Minister Naveen Patnaik.
The MoU was signed on behalf of the state government by P K Jena, the state energy secretary. The state energy minister Atanu Sabyasachi Nayak and Chief Secretary B K Patnaik were present on the occasion.
KU Projects Pvt Ltd, a fully owned subsidiary of Ind Barath Power Infra Pvt Ltd (IBPIL) intends to set up a 1320 (2x660) super critical thermal power plant at Pitamahul in Sonepur district at a total investment of Rs 7260 crore. The MoU was signed by K Raghu, chairman of IBPIL.
Construction work on the project is expected to be taken up in the first quarter of 2011 and the first unit is likely to be commissioned within 30 months of signing of the MoU.
The project will provide direct employment to 450 people and indirect employment to many from the peripheral areas. A nominated agency authorized by the state government will have the right to purchase up to 12 per cent of power sent out from the plant at variable cost and the tariff for such power will be determined by the Orissa Electricity Regulatory Commission (OERC).Similarly, SPI Ports Ltd has proposed to set up a 1320 MW (2x660) coal fired supercritical thermal power project at Mahakalpada in Kendrapara district at a total investment of Rs 6609.60 crore.
The company will utilize the sea water through desalination process and use air cooled condensers for the proposed power plant.
NSL Nagapatnam Power Company Ltd also intends to set up a 1320 MW (2x660) supercritical thermal power project at Banamalipur in Angul district at a cost of Rs 6600 crore. The company will draw water from the Mahanadi river system.