The first private sector hydroelectric power project in West Bengal is slated to be commissioned by the end of 1999. The power purchase agreement for the project was signed here between the West Bengal State Electricity Board (WBSEB) and the Nippon Power Limited of the Rs 25 crore Saraogi group.
The power station is being set up on the Lodhama river which is a tributary of the Rammam river. WBSEB has already constructed a 51 mw hydroelectric power station on the Rammam river. The new site is about 5 km from the Rammam project, and, is about 70 km from Darjeeling and 150 km from Siliguri.
This will be the group's first foray into the power sector. However, it is already negotiating several other small hydroelectric power projects in Jammu & Kashmir and Himachal Pradesh. It is also looking at the possibilities of exploiting other small hydro projects in Bengal.
This will be a small 3 mw project costing Rs 15.5 crore. P C Saraogi of Nippon Power said that the Beijing Science & Technology Group had offered to set up this project on a turnkey basis. But, the Chinese offer at Rs 20 crore was much more expensive.
Nippon Power is yet to finalise the sourcing of the three generating units of 1 mw each. But, the supply will be totally indigenous.
The power station is expected to generate 17 million units of energy a year. The tariff has been fixed at Rs 2.25 which will increase at the rate of 4 paise a unit every year. WBSEB will buy power for the next 25 years, according to the power purchase agreement.
The project is being financed with 3:1 debt equity ratio. The loan will come from the West Bengal Renewable Energy Development Agency at a subsidised interest rate of five per cent only. The union ministry for Non-Conventional Energy Sources will provide the subsidy.
WBSEB is negotiating with two other private promoters for a new concept in power generation and supply.
The private entrepreneurs will generate power at the Darjeeling hills and inject the energy into the Board's network. The power will be delivered at any point chosen by the entrepreneur in the plains.
This is a new concept and is known as banking of power. The power generator deposits the power with the Board and withdraws when and where power is required.
Indian Rayon is keen to set up a captive 20 mw hydel plant while the Texmaco Industries is negotiating for a small 2.4 mw hydro unit. Indian Rayon wants the power delivered at its Rishra factory while Texmaco wants the power at its Belghoria unit.
The West Bengal government has taken a policy decision to charge a wheeling charge at the rate of two per cent of the tariff for any captive power project from non-conventional sources under 3 mw.
The wheeling charge for bigger projects will depend on the actual cost of transmission since there may be some energy loss between the power input and output points and different transmission voltage at the two points.
The power station is being set up on the Lodhama river which is a tributary of the Rammam river. WBSEB has already constructed a 51 mw hydroelectric power station on the Rammam river. The new site is about 70 km from Darjeeling.
