NTPC considering to set up power plant in region

NAGPUR, MAY 19: The National Thermal Power Corporation (NTPC) is seriously considering to set up a power plant in Vidarbha soon. According...

NAGPUR, MAY 19: The National Thermal Power Corporation (NTPC) is seriously considering to set up a power plant in Vidarbha soon. According to available information, the Union Minister for Power, P R Kumaramangalam, told authorities of the Western Coalfields Limited (WCL) to explore the possibilities for supplying requisite coal if such a project is launched in the region.

The Union Minister held a prolonged discussion over the issue with the WCL chairman-cum-managing director (CMD), K C Vijh and other officials during his Nagpur visit last week.

Nagpur is the regional headquarters of NTPC’s Western region, which covers Madhya Pradesh, Gujarat, Goa, Maharashtra and Daman and Diu. Incidentally the Central Government undertaking has no power plant in Maharashtra. The NTPC, western region, has Kawas, Gandhar (both in Gujarat), Vindhyachal and Korba (both in Madhya Pradesh) power plants while a super thermal power station is coming up at Sipat (Madhya Pradesh) soon.

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The idea behind to set up a power plant in Vidarbha is to meet the power demand in Maharashtra and utilise the coal resources in the region. Moreover, the NTPC considers that Maharashtra Government is reasonably a `better client’ than the other states of western region regarding payment of power dues. If such project comes up, the state will also get power from the union undertaking at a cheaper price. The Maharashtra State Electricity Board (MSEB) is virtually paying double the NTPC rates to multi-national power giant Enron for purchasing power.

According to reports, the MSEB is desperately in need of power as it will face the peak load shortage ranging from 209 mw to 1,974 mw from the year 2004.

The NTPC has already agreed to supply power to MSEB from its new plants. The MSEB will soon sign separate power purchase agreements (PPAs) with the NTPC for the supply of power from the proposed Sipat project (638 mw), Vindhyachal-II (319 mw), Gandhar-II (186 mw) and Kawas-II (202 mw).

The NTPC reportedly had expressed that the MSEB should ensure payments for the power purchased and arrange an adequate security mechanism for ensuring the same.

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Talking to The Indian Express, a senior WCL official informed that the company was exploring the possibilities to supply the required coal to proposed NTPC power project from Umred, Chandrapur, Ballarpur or Wani area in Vidarbha region. The coal company can easily supply coal for at least 1000 mw power plant from these areas through its present production. The WCL can even provide a virgin coal block to NTPC for the purpose. However, the NTPC can even buy coal from private coal companies in the wake of the proposed Private Coal Mines bill, the official pointed out.

A positive step in this regard is expected soon as Kumaramangalam is holding both the portfolios, Power and Mines and Minerals.