PIB clearance for Barsingsar power project

The Project Investment Board (PIB) has cleared the 250 Mw Barsingsar power project. The Rs 1,300 crore lignite-based power project is being set up by the Neyvelli Lignite Corporation (NLC) near Bikaner in Rajasthan.

The project is expected to resolve the power crisis in the state to a great extent.

Work on the project could be started only after the clearance from the Cabinet Committee on Economic Affairs (CCEA), said an official in the state energy department.

With an early CCEA clearance, the first 125 Mw unit of the project is expected to start functioning by 2007-08. The project has been hanging fire for some time. The state government had approached the NLC in 1987 to set up the project.

A memorandum of understanding (MoU) was also signed between the Centre, the state government and the NLC in November 1987 for developing a lignite mine for producing 1.7 million tonnes of lignite annually. A 250 Mw (2x125 Mw ) lignite-based power plant also was proposed.

The Centre approved the Barsingsar lignite-mine-cum-power project in April 1991. The NLC later abandoned the project because of financial constraints and lack of time.

The lignite power project was also not a "high priority" for the company at that time as it had several projects on hand.

In October 1996, the Rajasthan government offered the project to the Hindustan Development Corporation, but the private agency failed to ensure even financial closure.

But the corporation approached the state government around a year back with improved financial position expressing its willingness to revive the project.

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Reviving hope

• The Rs 1,300 crore lignite-based power project is being set up by the Neyvelli Lignite Corporation near Bikaner
• With an early CCEA clearance, the first 125 Mw unit of the project is expected to start functioning by 2007-08