Maharashtra gives nod to power projects with Rs 3,305-cr cost escalation

The completion of these projects would augment the thermal power plant by 2,730 MW.

Written by Shubhangi Khapre | Mumbai | Published:May 17, 2017 2:37 am

To tackle power problems, state cabinet Tuesday gave approval to the revised estimate for the three thermal power plant expansion projects at Chandrapur, Koradi and Parli, taking the total cost to Rs 23,111 crore. Their original cost, which was estimated along with the approval in 2008 and 2009, was Rs 19,806 crore. Of the total Rs 3,305 crore capital investments required, Rs 2,485 crore would be raised through financial institutions and Rs 820 crore provided by the state government. The completion of these projects would augment the thermal power plant by 2,730 MW.

At Chandrapur thermal power plant, the permission to set up transmission to augment additional power generation to 500 MW, with the approval of Rs 5,500 crore, was given way back in 2008. However, over the years, the implementation of the project led to cost escalation due to increase in market prices of the material required and also inordinate delay in its execution it was observed. However, the process is underway. The revised cost of the Chandrapur project now works to Rs 7,004 crore. It amounts to an increase of Rs 1,504 crore.

While Rs 1,203 crore would be raised through financial institutions, the remaining Rs 300 crore would be provided by the state government to meet the revised cost of the project. The Koradi thermal power plant’s expansion for additional 660 MW capacity was approved at Rs 1,1880 crore. There was a major delay from the contractors in the completion of this project, leading to cost escalation to Rs 14,026 crore. The government is pursuing the project.

Of the three, only one sub-project has been completed and the other two are in the process to be completed. Of the additional Rs 2,143 crore required for the project, Rs 717 crore would be raised through financial institutions and the remaining Rs 429 crore would be provided by state government.

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