NTPC finetuning MoU for Lalitpur project with UP

Jul 16 2008, 01:15 IST
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SummaryWhile the UP govt is trying to expedite the process of signing the MoU for the 4000 mw ultra-mega thermal power plant to be set up in the joint sector with power major NTPC in Bundelkhand.

While the Uttar Pradesh government is trying to expedite the process of signing the memorandum of understanding (MoU) for the 4000 mw ultra-mega thermal power plant to be set up in the joint sector with power major National Thermal Power Corporation Limited (NTPC) at Lalitpur in Bundelkhand, by writing to the state-owned utility to set a suitable date for signing the MoU, the NTPC is on its part, is still studying the feasibility report on the project.

According to in the NTPC, the company is trying to work out the finer points of implementing the project. “It is a huge project, worth Rs 20,000 crore. For a project of this size, we must make sure that all the linkages are in place first; for example, where would we get the coal supply from and at what price, the water too and of course from where would we get our supply of equipment. Till the time all these issues are worked out, we will not be able to give a concrete date for the MoU signing,” he stated.

Speaking to FE, Alok Tandon, managing director, Uttar Pradesh Utpadan Nigam said that the state government has written to the NTPC last week, seeking the NTPC CMD’s advice on an appropriate date on which the MoU can be signed. “From our end, the project has already got the Cabinet’s clearance. Now we are awaiting the NTPC's reply to our letter,” he said.

It may be mentioned that the project, which would be constructed on a 30:70 partnership, has got the state cabinet's approval last month. While the state government’s equity share in the project would be 30%, the remaining 70% would be held by the public sector enterprise. They have also agreed that 75% of the power generated in the ultra mega power plant would be given to UP, while the rest would be the NTPC’s.

It may be recalled that apart from the Lalitpur project, many other projects are also being set up as a joint venture projects between the NTPC and the UP Utpadan Nigam. They include the Rs 7200 crore worth, 1320 mw super critical Meja thermal power project near Allahabad, for which an agreement was signed by the CMD of the Uttar Pradesh Power Corporation Limited, G B Patanaik and CMD of NTPC, T Shankarlingam in February this year. The other projects are the 800x2 Obhra extension project and the 1000

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