The Hindu : Tamil Nadu / Chennai News : State seeks MoU route to set up independent power projects

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Saturday, Nov 18, 2006
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Tamil Nadu

Tamil Nadu - Chennai

State seeks MoU route to set up independent power projects

T. Ramakrishnan

Centre insists on sticking to international competitive bidding

CHENNAI: Tamil Nadu raised the issue of allowing independent power projects through a memorandum of understanding (MoU) at Thursday's meeting of State Power Ministers in New Delhi.

After attending the meeting, Electricity Minister Arcot N. Veeraswami told The Hindu on Friday that the State had received proposals from a number of potential investors for setting up plants of about 30,000 megawatt (MW) capacity.

The Government wanted to adopt the MoU route as it viewed it to be advantageous.

Recalling that the MoU route was allowed in the 1990s, Mr. Veeraswami said it was because of this policy that plants of over 20,000 MW had come up.

He noted that Tamil Nadu was selling 1,500 MW to other States.

The State's requirement would be only 4,000 MW which it was hopeful of meeting through its own projects. So, by permitting the State to set up the projects, the needs of power-deficit States could be met.

Asked about the Centre's response, he said it was not receptive to the idea and was insisting on sticking to the mode of international competitive bidding. Union Power Minister Sushil Kumar Shinde had expressed his inability in according any special treatment to Tamil Nadu.

Captive mine blocks

Pointing out that the Tamil Nadu Electricity Board was importing two million tonnes of coal to bridge the gap in supply from Coal India, Mr. Veeraswami said that the State had requested the Centre to allot a mine block at Talcher in Orissa.

But, the Centre earmarked a captive coalmine block in Chhattisgarh to be explored by the Board and the Maharashtra State Mining Corporation.

As the Board's thermal stations were situated far away from the coalmines, the mine block should be in close proximity to ports, considering the rail-cum-sea-rail mode being adopted by the TNEB's plants.

This was why the State sought the Talcher mine block.

The Union Minister had promised to consider the matter favourably.

Mr. Veeraswami said that the State had also sought an extension of one more year for retaining the Board in its present form.

He expressed the hope that the Centre would accord its approval.

On the reforms to be carried out by State Electricity Boards, he argued that good performers and poor performers should not be clubbed.

Depending upon their strengths and weaknesses, the Boards should be permitted to plan their schedule for reforms.

No time frame should be fixed in this regard.

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