Bangalore: A looming threat from environmentalists has not scared away foreign and domestic private developers from submitting Expressions of Interest (EoIs) for setting up a 4,000 MW ultra mega thermal power project at Tadri village, near Karwar town, in coastal Uttar Kannada district.

As many as 20 entities, including some of the major players in the power sector, filed their EoIs before the deadline of April 10. These include public sector power utility NTPC, Larsen & Toubro, Reliance Power, Sterlite Industries Limited, Tata Power, Aditya Birla Group, Gammon India, Madhucon, Videocon Industries Limited, Ashok Leyland, Essar Power, Torrent Power, Sumitomo, Itochu, Lanco Infratech Limited, Navbharat Ferro Alloys Limited, Khanjee Holdings, KSK Electricity Financing India Pvt Limited, BSCPL-SCL-CR18G consortium and the BSCPL-SCL joint venture, a Power Ministry official told The Hindu .

Power shortage

Karnataka is banking on the proposed coal-based power plant to ease its peak power shortage of 1,500 MW to a great extent. This is one of the five ultra mega thermal power projects planned by the Union Government with private sector participation on a build, own and operate (BOO) basis to enable quick capacity addition. At a conservative estimate of Rs. 4 crore per MW, the project is likely to cost Rs. 16,000 crore. Given the economies of scale, the proposed plant is expected to generate power at Rs 1.50 to Rs 1.80 per unit.

Bio-diversity hotspot

Environmentalists are threatening to scuttle the project for "it will endanger the estuary of Agnashini river, one of the 18 bio-diversity hotspots in the world."

The Union Government has incorporated five special purpose vehicles (SPVs) as subsidiaries of the public sector Power Finance Corporation (PFC) for executing each of the five projects.

Special purpose vehicle

Coastal Karnataka Power Limited, special purpose vehicle for the Tadri plant, will be transferred to foreign or domestic private promoters on the basis of tariff-based competitive bidding process, whereby the bidder quoting the least first-year tariff will be awarded the project.

At a meeting held in New Delhi on April 5, the Union Power Ministry directed the State Government represented by Principal Secretary (Energy) and the Managing Director, Karnataka Power Corporation, to conduct a feasibility study at the earliest for development of the State Government-owned Tadri Port to handle imported coal throughout the lifecycle of the power plant.

Coal requirement

"The power plant requires 40,000 tonnes of coal a day, which will be imported on ships. If the port is not feasible to bring coal, the project will not come up," the official said.

The Union Government has appointed Wapcos to undertake on-site activities such as geo-technical and environment impact assessment studies.

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