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Orissa Govt. stalls power pact signed with Delhi

Smriti Kak Ramachandran

NEW DELHI: The Orissa Government has dampened Delhi’s hopes of procuring additional power to meet the Capital’s demands.

North Delhi Power Limited had entered into an agreement with an Orissa-based company, Navbharat Alloys, for purchase of 75 MW of power from April 2008. However, the agreement has been stalled as the Orissa Government has refused to allow the company to transmit power to Delhi.

According to sources in the Delhi Government’s Power Department, the Orissa Government wants Navbharat Alloys to sell the 75 MW to the State Government, which in turn would supply it to Delhi.

“The Orissa Government wants to make money from the power that can be sold to other States. The 75 MW that NDPL was due to receive was being sold at competitive prices, much lower than the cost of power in the open market,” said sources.

It was pointed out that Orissa has over 400 MW of captive power that can be sold to other States to help them meet their demands. “But the Orissa Government wants to procure this power and resell it at a premium,” said sources.

Referring to the agreement between NDPL and Navbharat Alloys that now stands jeopardised, sources said: “The grid network in Orissa is owned by the State Government. If this power is to be transmitted to Delhi, it has to pass through the Orissa grid network to reach the Eastern region gird, from there to the Northern region grid, and finally to Delhi Transco Limited from where it will go to the discom. Therefore, the company cannot sidestep the State Government.”

The Power Department has also written to the Damodar Valley Corporation for failing to deliver 100 MW of power. “The agreement was to supply 100 MW between July 2007 and October 2007 and 130 MW and 170 MW respectively from Chanderpur 7 and 8. However, Damodar Valley Corporation now claims that Chanderpur 7 and 8 has got delayed. As of now, Damodar Valley Corporation is providing Delhi 60-70 MW of power as against the scheduled 100 MW,” said Power Department sources.

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