Cabinet sets new benchmark for power projects

Maithon 1000 mw is being set up jointly by National Thermal Power Corporation NTPC and Damodar Valley Corporation DVC. NTPC would be expanding the four gas-based plants Anta, Auriya, Kawas and Gandhar to an additional capacity of 1300 mw each. The other inter-state projects which have been approved are Cuddalore 1000 mw and Narmada 1000 mw to be expanded to 2000 mw.

Mahajan added that the quot;cabinet was asked to define the benchmark formega power projects as it was not clearly defined when various concessions were announced for it by government on October 30 last.quot;

The government has allowed import of capital goods free of customs duty, 15 per cent price preference, deemed export benefits for domestic bidders, income tax exemption/concessions for any 10 years during the first 15 years and sales and local tax exemption for supplies to mega power projects as concessions to increase power generation in the country.

The quot;power visionquot; of the government plans to generate an additional 80,000 mw before 2008. The other projects which had already been notified for duty concessions include Kahalgoan Stage-2 1,500 mw, North Karanpura STPP 2000 mw, Barh STTP 2000 mw, Cheyyur 1,500 mw, Hirma 3,960 mw, Krishnapattanam 1,500 mw, Pipava 2000 mw. The hydel projects identified for concession were Koel-Karo 710 mw, Teesta Stage 8211; 5 510 mw, Koldam 800 mw and Parvati 800 mw.

Mahajan added that the Cabinet had also approved commerceministry8217;s proposal of India joining the Association of Coffee Producing Countries ACPC and cleared the revival package for Calcutta-based National Instruments Limited NIL. The minister said that the Indian High Commissioner in UK, Lalit Mansingh had been asked to sign the ACPC agreement.

The decision had been kept pending before the Cabinet for quite sometime after the Atal Bihari Vajpayee government lost the vote of confidence in the Lok Sabha on April 17 by a solitary vote.

ACPC was floated by leading coffee producing countries like Brazil and Colombia in 1989 after ending the retention system. India8217;s decision to join ACPC coincides with its efforts to get funds for research and development from the International Coffee Organisation ICO, a body of coffee growing and consuming nations.

With regard to NIL, Mahajan pointed out that the revival package would involve infusion of fresh equity of Rs 2.63 crore, extension of Rs 18.21 crore for voluntary retirement scheme and freezing of Rs 161.26crore dues to government for one year.

quot;The government would also give guarantee for working capital to be obtained by the company as loan from the banks,quot; the minister added. He said if the revival package worked, then the government would consider writing off the entire dues from the company to it. It was for the first time that the government had come out with such a revival package, the minister stressed.

Maharashtra clears 7 power projects

MUMBAI: The Maharashtra government today approved selection of promoters for seven new medium power projects to be set up in various MIDC industrial estates in the state for generating over 1,000 mw power.

Briefing newspersons after the state cabinet meeting here, the Chief Minister Narayan Rane said the projects would use liquid fuel for power generation.

Energy Secretary Ashok Basak said the projects were expected to be completed within 15 to 21 months, adding that each project had a capacity of between 150 and 180 mw.

Deccan Chronicle andMalaysian Shipyard and Engineers are promoters for the project to be set up at Chincholi Kate in Solapur district, Rane said, adding that power from this project would cost Rs 1.85 per unit.

Ashok Leyland and Fiat would set up the project at Kagal in Kolhapur district and the cost per unit would be Rs 1.90, he said.