The Hindu : New Delhi News : Power distribution companies want to set up power plants

Online edition of India's National Newspaper
Wednesday, May 16, 2007
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New Delhi

Power distribution companies want to set up power plants

Smriti Kak Ramachandran

NEW DELHI: Left to shoulder the responsibility of procuring power for the consumers, the Capital's power distribution companies have written to the Delhi Government seeking permission to set up their own power generation plants.

Distribution company BSES is the latest to seek permission to set up a 1,400 MW gas-based plant. Its North Delhi counterpart, the North Delhi Power Limited (NDPL), has been awaiting the Government's nod for the past three years to set up a power generation plant in the city.

According to sources, BSES has written to the Delhi Government seeking land for the proposed 1,400 MW project that is likely to cost about Rs. 7,000 crore. The power project will require nearly 160 acres of land and about 25 cubic metres per hour of water and 6 million cubic metres of gas per day.

"BSES has identified six areas where the power plant can be set up. These are around Laxmi Nagar, Mayur Vihar, Sarita Vihar, Bahadurgarh, Karawal Nagar and Palam," sources said.

Meanwhile NDPL, which had shown interest in the gas-based project planned at Bawana, has now sought land at Khanjawala for its 1,000 MW plant.

"We are still waiting for the Government's approval to start a gas-based generation plant at Khanjawala," said an NDPL official.

Making a case for allowing BSES to set up its own generation plant, discom sources said: "The Northern Grid of which Delhi is a part, is reeling under a 15.5 per cent shortage of power. Even though Delhi's power demand is increasing at the rate of 6 to 7 per cent per annum, generation has not been augmented."

Welcoming the discoms' proposal, Power Minister Haroon Yusuf said: "We are not opposed to any such move. Since the discoms have to procure power for the city they will have to explore such moves. Besides, the Power Procurement Group is a short term arrangement that will last only till 2010."

Both discoms also claim that the proposed generation units will bail the city out and reduce its dependence on other States.

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