The Hindu : New Delhi News : Standoff between Haryana, Delhi on power issue resolved

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Thursday, Dec 13, 2007
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Standoff between Haryana, Delhi on power issue resolved

Smriti Kak Ramachandran

Aravali Power Company to pay for transmission lines

NEW DELHI: The standoff between Haryana and Delhi over the cost of laying transmission lines from the upcoming Jhajjar power plant to Mundka in Delhi has been resolved. At a meeting chaired by the Union Power Secretary on Wednesday, it was decided that the cost of laying the transmission lines would be borne by the generation company -- Aravali Power Company.

Haryana had recently expressed its inability to bear the expenses incurred on laying the transmission lines from Jhajjar to Mundka, from where the Delhi Transco Limited will provide a transmission corridor.

“After a discussion on the issue pertaining to the mode of execution of the power transmission lines, it was decided that Aravali Power Company will construct the lines,” said a senior official in Union Power Ministry.

Sources in the Power Department said the matter was also referred to the Power Grid Corporation (PGC) to work out a solution. “The DTL cannot pay for the expenses because according to the law it is a State transmission utility and is not permitted to do so, the PGC stating Clause 10 of the Electricity Act said since these are dedicated power lines the generation company should be asked to bear the costs.”

The 1,500 MW power plant at Jhajjar is expected to provide Delhi with an additional 750 MW of electricity. The coal-based power project, which is a joint venture of the NTPC, the Delhi Government and the Haryana Government, will have three units of 500 MW each.

“Delhi and Haryana will be entitled to 24.5 per cent of the total power generated and the major equity holder NTPC will have a share of 51 per cent,” sources said.

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