(News) UP approves 1,980 MW thermal project in Bundelkhand region

UP approves 1,980 MW thermal project in Bundelkhand region

The Uttar Pradesh government on Tuesday approved the 1,980-MW thermal power project to be set up by a private consortium, led by sugar major Bajaj Hindustan, in the Bundelkhand region. "The (state) Cabinet during its meeting chaired by Chief Minister Mayawati this evening decided to set up the proposed 1980 MW thermal power project in Lalitpur district through memorandum of understanding instead of bidding process," an official spokesman said here. The Cabinet also gave permission to the state utility Uttar Pradesh Power Corporation Ltd to sign an MoU approved by the government with a consortium led by Bajaj Hindustan Ltd, the spokesman said.

As a part of the MoU, shares of UPPCL-owned Lalitpur Power Generation Company Ltd would be transferred to the developer after payment of establishment expenditure. The state will get 90 per cent share of the power generated by the plant at a rate fixed by State Electricity Regulatory Commission. The power project would be set up on 1,500 acre land at Mirchwara village some 60 km from Rajghat dam in Lalitpur. The MoU between the UPPCL and Bajaj Hindustan is likely to be signed this week. The Cabinet also approved a proposal to sign another MoU with Bajaj Hindustan to set up 450 MW coal-based power projects at its sugar mills in the state.

These power projects of 90 MW each would be set up at Bajaj's mill at Pilibhit, Lakhimpur Kheri, Shahjahanpur, Gonda and Balrampur. "Recently Bajaj informed that in place of 80 MW each it would set up 90 MW projects and 90 per cent of the power generated would be given to the state," the spokesman said. Earlier on January 14 this year Bajaj signed an MoU with the UPPCL to set up five 80 MW thermal projects at its sugar mills. It was agreed that 50 per cent of the power generated at these projects would be supplied to the state. The Cabinet also revised cost of Rs 1,862.39 crore required for 2x210 Pariccha extension thermal power project. The cabinet also approved a proposal to issue a conformance letter to obtain Rs 83.2 crore loan from Power Finance Corporation required for Pariccha project.

Courtesy: PTI