The Hindu : Karnataka / Bidar News : Lack of funds hits plan to hike power generation

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Saturday, Feb 26, 2005

Karnataka

Karnataka - Bidar

Lack of funds hits plan to hike power generation

By Our Staff Correspondent

BIDAR, FEB. 25. Despite signing a power purchase agreement (PPA) with Karnataka Power Transmission Corporation Ltd., the Naranja Sahakari Sakkare Karakhane's cogeneration facility may not be able to immediately supply power to the KPTCL grid owing to a paucity of funds.

The Chairman of the factory and Minister for Forests, Gurupadappa Nagamarapalli, told presspersons here on Thursday that the factory has signed a PPA for supplying power at Rs. 3.10 a unit.

"However, we need to invest an additional Rs. 12 crores in the cogeneration plant before we start exporting power to the KPTCL."

Investment

"The cost of erecting the plant has been estimated at Rs. 35 crores. We have invested Rs. 23 crores till now and need some time to secure more funds for investment.

"Our plans of setting up a distillery and a biofertilizer plant have also been hit by a shortage of funds," the Minister said.

He added that the factory has to repay huge loans and bear high depreciation costs that have increased the cost of production.

"The cost of production of sugar is Rs. 2,600 a quintal, but the market price of sugar is only Rs. 1,600 a quintal. We still have sugar stocks worth Rs. 10 crores. In such circumstances it is very difficult to run a sugar factory, Mr. Nagamarapalli said.

Increase in production

He said that the factory will generate 8 MW of power by burning bagasse (crushed sugarcane) to run steam turbines. Half the power produced will be used to run the factory and 4 MW will be sold to KPTCL, he said.

He added that the plant plans to increase the grid contribution to 7.5 MW.

Govt. blamed

The Minister blamed the Government for the delay in signing the PPA.

He said that the delay had cost the factory Rs. 2 lakhs a day for the last 74 days. Electricity cannot be stored and we had to waste 3.5 MW of power generated at the plant, Mr. Nagamarapalli said.

Election of directors

He said that the factory's shareholders who had paid a membership fee less than Rs. 2,000 will not be allowed to vote in the elections to the board of directors, scheduled to be held on March 13.

Two resolutions to this effect were passed at the general body meetings in the last three years.

Copies of these resolutions have been sent to all the members and they have been given enough time to pay the full membership fee, Mr. Nagamarapalli said.

Allegations

He was reacting to the allegations of the Janata Dal (Secular) and the Bidar Zilla Kisan Bachao Andolan Samiti that he was politicising the elections and depriving some people of the right to vote.

Mr. Nagamarapalli also said that polling will be held at the factory premises as it is a complex process and each voter has to cast nine votes.

He also said he is yet to decide on contesting elections to the factory's board and urged his supporters to wait until he makes a final decision in this regard.

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Lack of funds hits plan to hike power generation