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Bundelkhand set for gains in power play as PMO steps in

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  • With the intervention of the Prime Minister’s Office (PMO), hopes for the coal-based 4,000-MW project at Lalitpur in the parched Bundelkhand region have been revived.

    The PMO has directed the National Thermal Power Corporation (NTPC) to conduct the feasibility study of the thermal power project.

    A delegation of Congress leaders from the Bundelkhand region of Uttar Pradesh and Madhya Pradesh led by AICC general secretary Rahul Gandhi had met the Prime Minister on July 26.

    Besides demanding the creation of the Bundelkhand Development Authority, the delegation had also urged the PM for a mega power project in Lalitpur.

    In January 2008, the NTPC had agreed to set up the Rs 18,000-crore thermal project in joint venture with the UP Thermal Power Generation Corporation — with each partner holding 50 percent equity.

    Uttar Pradesh Chief Minister Mayawati had also made an announcement to this effect on January 15, 2008.

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    Subsequently, the state Cabinet endorsed the project in March 2008. On being approached by UP’s power utility to sign the MoU for the project, the NTPC, however, changed its stance.

    On February 2, NTPC communicated that for certain technical reasons it was not interested in setting up the project in joint venture. Later, the NTPC asked the UP government that the project be handed over to it, which it will execute on its own. The state government, however, rejected the proposal.

    Had the project been executed in joint venture, UP’s share in the power generated from the project would have been 70 per cent and 40 per cent if executed only by the NTPC.

    ... contd.

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