Friday, April 13, 2012

Gujarat's 2nd ultra mega power plant to come up in Junagadh

Gujarat's 2nd ultra mega power plant to come up in Junagadh
Times of India By Rajiv Shah

Government of India conveyed to the Gujarat government on Thursday that it is all set to begin the procedure for setting up the second ultra mega power plant (UMPP) in the state within three months. Central government officials in Gandhinagar on Thursday told state officials that time has come for the latter to be ready with offers on cost of land and infrastructure facilities like water, port and permissions like right of way and right of use, needed to implement the Rs 20,000 crore project.

A high-level delegation consisting of senior officials of the Central Electricity Authority (CEA) and the National Power Finance Corporation Ltd said they had "finalized" 500 hectares of land for setting up UMPP at Lodhwa village in Junagadh district and will now begin implementing the project.

Lodhwa has been preferred over two other locations CEA had considered - one in Jamnagar district near Dwarka and another at Kandla.

To be a 4,000 MW imported coal-based project, Gujarat became the first state in India where Government of India has decided to set up the second UMPP. Phase one of the first UMPP (800 MW) has been implemented by the Tata Power at Mundra in Kutch district.

"We have earmarked the land needed by CEA to set up the second UMPP. Certain mining issues need to be sorted out before handing over the land," said a senior government official.

During discussions, the Central team, led by chief engineer, CEA, M S Puri said the layout plan for the second UMPP has been completed. "We were told that the bidding process, including requests for expressions of interest in the project, will now commence," the official said.

Already, a surplus power state by 2,000 MW, Gujarat government officials are not sure on whether to sign a power purchase agreement with the proposed developers of the second UMPP. "We may decide on it after looking into the cost at which the developers will sell power," the official said.

Currently, power plants in Gujarat have the capacity of 13,500 MW. The place where the second UMPP is to come up is next to the proposed multi-purpose port being developed by Shapoorji Pallonji at Chhara in Junagadh district.

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