The Hindu : New Delhi News : DDA allocates land for Bamnauli Power Plant

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Monday, Dec 03, 2007
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New Delhi

DDA allocates land for Bamnauli Power Plant

Smriti Kak Ramachandran

However, consumers will have to bear a part of financial liability

Delhi Development Authority quotes astronomical price of Rs.110 crore for the 50 acres of land
Also wants power department to return land where Indraprastha power plant stands

NEW DELHI: There is both good and bad news for power consumers in the city. The good news is that the Delhi Development Authority has finally allotted land for construction of a power plant at Bamnauli, while the bad news is that because of the astronomical price that the DDA has quoted for the 50 acres, consumers will have to shoulder a part of this financial liability.

After a prolonged wait, the DDA has finally given land for the 750 MW gas-based power plant at Bamnauli, but has sought Rs.110 crore for it. What’s more the DDA also wants the Delhi Government’s Power Department to return the land where the Indraprastha power plant stands.

Power Department officials conceded that even though the cost of land was prohibitive, there was no option but to pay up. “Work has to start on the plant and we cannot delay it anymore,” a senior Power Department official said.

“The DDA has fixed the land rate using the zonal variant rate. They are asking for Rs.110 crore for the land at Bamnalui and the the Indraprastha station which is now worth Rs.200-300 crore. The Department will be faced with a heavy financial liability that will eventually be passed on to the consumers.”

Since the Power Department will not absorb the spending on land for the power plant, this expenditure is going to be reflected in the tariffs. “Work on the plant will begin early next year to meet the December 2010 deadline,” the official said.

A Memorandum of Understanding has already been signed with Petronet for supply and purchase of gas.

With the demand for power in the city likely to reach 8,000 MW by 2012, the Power Department is aiming to produce 4,000 MW of power in and around Delhi. Apart from the Bamnauli plant, the Power Department is banking on the 1,500 MW Bawana plant, the 750 MW Aravalli plant and the 950 MW Dadri plant to meet the requirements of the city.

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