State's demand for all Akaltara power turned down

The power ministry has shot down a proposal of the Chhattisgarh government to use the entire 4,000 Mw of power from the proposed Akaltara ultra mega power project in the state. The ministry has also turned down the state government's demand of 12 per cent free power from the project.

The Akaltara coal pit-head-based power project is slated to come up in Jangir Champa district. The power ministry said this at a meeting held with representatives of various states for allocation of power from the proposed ultra mega power projects.

"The ministry has told the state government that the question of availing of the entire 4,000 Mw from the project doesn't arise as ultra mega power projects are being developed as inter-state projects," power ministry sources told Business Standard.

Regarding the state's demand for free power, representatives of other states opposed it, terming it as a retrograde step.

"The demand didn't augur well with the concept of ultra mega power projects, which by nature are required to provide the lowest possible tariff," sources added.

Power Secretary RV Shahi also said such a demand was not in line with any policy and pointed out that the Chhattisgarh government had said two years back it would not ask for any free power.

Tentative allocation of power from the five ultra mega power projects have been drawn up. Out of the total demand of 27,400 Mw by 13 states, the ministry has firmed up allocation for 16,000 Mw.

This does not include allocation from the Akaltara ultra mega power project. Maharashtra has received the maximum allocation of 3,800 Mw.

While Rajasthan and Gujarat have been allocated 1,600 Mw of power each, Delhi, Uttar Pradesh, Uttaranchal, Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Karnataka, Tamil Nadu and Kerala have been allocated 500 Mw, 800 Mw, 100 Mw, 1,100 Mw, 850 Mw, 1,700 Mw, 750 Mw, 2,000 Mw, 1,000 Mw and 200 Mw respectively.