Karnataka   

Yeddyurappa defends pithead power plant in Chhattisgarh

BANGALORE: Karnataka Chief Minister B. S. Yeddyurappa on Saturday has defended the initiative to set up a 2,000-MW pithead power plant in Chhattisgarh and said it will save the exchequer nearly Rs. 1,500 crore a year since power generation cost will be lesser because of the proximity to coal mines.

Mr. Yeddyurappa, who addressed a press conference along with his Chhattisgarh counterpart Raman Singh, said the cost of power to be generated in Chhattisgarh would be only around Rs. 2.40 a unit as the coal mine was within 100 km from the plant. It would have cost Rs. 4 a unit to generate power if a thermal plant was to be set up in Karnataka as the coal had to be transported from a long distance. The State would save Rs. 40,000 crore in 25 years.

The cost of transportation of coal was much more than its basic price. Hence it was wiser to establish thermal power station near the coal mines and transmit the generated power, he said. The two Chief Ministers said the Memorandum of Understanding for the proposed power plant would be signed in Chhattisgarh in mid-August. Karnataka Power Corporation Ltd. (KPCL) would executive the project which would be taken up in two phases.

Dr. Raman Singh said the first phase of the project was expected to be completed in 48 months from now. While the first phase would have two generating units with a capacity of 500 MW each, the second would have two more units. Mr. Yeddyurappa said the first phase would cost Rs. 5,000 crore. Of this, Rs. 4000 crore would be borrowed from financial institutions. The remaining Rs. 1,000 crore would be raised by KPCL in the form of share capital. The State government would provide Rs. 250 crore.

Under the proposed agreement, Karnataka would provide 5 per cent of the power to Chhattisgarh. As per norms, Chhattisgarh State Electricity Board had the right to buy 30 per cent of power from this plant. However, Mr. Yeddyurappa said the State had requested Chhattisgarh to waive its right to purchase this quantum from the plant as that State had enough power.

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