The Hindu : Business : NTPC to set up power plant in Assam

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Thursday, May 31, 2007
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NTPC to set up power plant in Assam

Special Correspondent

Agreement for 750 MW thermal project signed

NEW DELHI: In another initiative aimed at reviving economic activity and giving a boost to infrastructure in the strife-torn State of Assam, National Thermal Power Corporation (NTPC) on Wednesday signed an agreement with the Assam Government for setting up a 750 MW coal-fired power plant at Bongaigaon at a cost of Rs. 3,750 crore.

The new project comes close on the heels of another major petroleum project, the Brahmaputra Gas Cracker Project costing Rs. 5,400 crore and coming up near Dibrugarh. The foundation for the latter project was laid by the Prime Minister, Manmohan Singh, last month.

NTPC will undertake the Bongaigaon project, its first power plant in the Northeastern region. It is expected to start generating electricity from the first 250 MW unit by the end of 2009. The second unit is likely to be completed in 2010-11 and the third by 2011-12. "The project will go a long way in solving the power crisis in Assam and also give a big boost to economic activity in the State,'' Chief Minister Tarun Gogoi said here after signing the agreement with NTPC, which was represented by its Chairman and Managing Director, T. Sankarlingam.

The power station will come up at the existing facilities of the now-defunct Bongaigaon Thermal Power Station of the Assam State Electricity Board.

"The project will give a boost to power generation in the Northeastern region in general, and Assam in particular,'' Mr. Sankarlingam said. NTPC has obtained coal linkages of 1.65 million tonnes annually from North-East Coalfields Limited and 9.7 lakh tonnes from Eastern Coalfields Ltd. The coal will come from Margherita fields in Upper Assam initially and later from ECL.

"This is for the first time NTPC is setting up a power station in Assam and I hope they will able to complete the project ahead of time,'' Secretary (Power), Anil Razdan, said.

Mr. Sankarlingam said NTPC was looking at new projects, including hydroelectric plants, in the Northeastern region. Assam had a peak demand of 800 MW and a peak shortfall of 150 MW. The shortfall increases to around 200 MW in the lean hydro season and the Bongaigaon project will reduce the state's dependence on hydropower.

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