CCEA may take up Mega Power Policy proposal tomorrow...

 

The Cabinet Committee on Economic Affairs is expected to take up Thursday the Power Ministry's proposal to amend the Mega Power Policy.

The policy was introduced in November 1995 to provide impetus to the setting up of large power projects and derive benefits from economies of scale.

"The proposal for making changes to the Mega Power Policy may be taken up at tomorrow's (Cabinet) meeting," said a source without providing further details.

Thermal power projects of 1,000 MW and hydel plants of 500 MW are eligible for benefits under the policy.

These guidelines were modified in 1998, 2002 and 2006 to encourage power development in Jammu & Kashmir and the North Eastern region.

The projects can tie up electricity sales with distribution utilities through long-term power purchase agreements. They can also sell power outside these agreements, in accordance with the National Electricity Policy 2005 and the Tariff Policy 2006, as amended from time to time.

The benefits of policy also apply to energy-efficient supercritical projects that are awarded through international competitive bidding with the mandatory condition of setting up indigenous manufacturing facilities.

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Power Projects worth Rs 34,647 Crs put on fast track…

 

The government has put on the fast track projects worth Rs 34,647 crore in petroleum and natural gas and power sectors by approving a number of them and giving directions for urgent clearances to the rest.

The projects in the power sector are worth Rs 26,700 crore while in the petroleum and natural gas sector the ones cleared are to the tune of Rs 7,947 crore.

These projects, held up for want of various clearances, including environmental nod, have now been put on the fast track by the Cabinet Committee on Investment (CCI) chaired by Prime Minister Manmohan Singh, sources said.

The projects cleared in the power sector include the Sagar super thermal power project in West Bengal and Hinduja National Power Corporation Limited project in Visakhapatnam.

About the Sagar power project, the Environment Ministry has been asked to decide the matter regarding environmental and CRZ clearance within two weeks.

With regard to the Hinduja project, the Power Ministry has informed that action for alleged CRZ violations by the project was being taken by the Andhra Pradesh Government.

The Environment Ministry has informed that the alleged violation attracts a penalty of Rs one lakh and the approval can be considered upon filing of the case in court, the sources said.

In this light, the CCI decided that a final decision regarding the CRZ clearance should be taken by the Environment Ministry within one week.

On the Rajwest Pithead Thermal Project in Rajasthan, they said the Environment Ministry has accorded clearance to the Kapurdi lignite mine for 25 per cent capacity enhancement.

The ministries of mines and coal stated that they have no objection to the proposal for approving mine plan.

For the Meenakshi Energy Private Limited project in Andhra Pradesh, the sources said, "The requisite renewal of environment clearance has been accorded by the Environment Ministry."

The petroleum projects cleared by the Cabinet Committee on Investment include IOC's Petroleum, Oil and Lubricants (POL) Tap-off point at Korba in Chhattisgarh.

The project was cleared after requisite environment clearances by the Environment Ministry.

For setting up a new 42-inch pipeline from Chennai to Manali by the Chennai Petrochemicals Corporation Limited, the officials said the Environment Ministry will accord the necessary CRZ clearance in two weeks.

The Environment Ministry has also given requisite environmental clearance to a Hindustan Petroleum Corporation Limited project for setting up a pipeline between Awa and Salawas in Rajasthan.

An Oil and Natural Gas project in Assam has also been accorded clearance by the Environment Ministry along with a Gujarat State Petroleum Corporation project to set up a liquefied natural gas terminal at Mundra in Gujarat.

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Power reforms saved state Rs 1,000 cr a year, says Odisha govt

 

Countering the criticism of failed power sector reforms in Odisha, the state government today said the measures taken to improvise power distribution system has resulted in saving of about Rs 1,000 crore per year.

"When OSEB (Odisha State Electricity Board) was disbanded, it used to get a grant of Rs 250 crore per year then. Considering the power purchase costs and demand today, it works out to Rs 1,000 per year. So we have been able to save this much money by privatising the sector," said Pradeep Kumar Jena, state energy secretary at a seminar organised by the Odisha chapter of Federation of Indian Chambers of Commerce and Industry (FICCI).

Odisha was the first state to privatise power sector in the country, by segregating power generation, trading and distribution business way back in 1996. Out of four power distribution companies (discoms), three are managed by Reliance Infra while the fourth one, Central Electricity Supply Utility (CESU) is currently run by Odisha Electricity Regulatory Commission (OERC).

The state has also pioneered in micro privatisation of the sector, where discoms are allowed to award power distribution franchisee licence to firms for collecting bills and for providing customer support.

Despite these steps, power supply and distribution scenario in the state continues to face difficulties, as discoms failed to curb transmission losses and collect electricity bills, resulting in poor financial health.

Realising that the discoms cannot upgrade the existing power transmission network, the state government recently announced a Rs 2,600 crore plan to build 500 substations across the state from its own revenue.

The government also flayed the Centre's policy disqualifying Odisha from Central grants based on the premise that it had privatised its power sector.

"Odisha is debarred from all schemes of the Centre because we have privatised the power sector. It appears as if we have done a mistake by allowing reforms," said Jena at the seminar titled 'Efficient Sector-Mature Economy'.

"One of the reasons why the state has power supply problem is that the discoms are relying on load shedding and are not willing to buy costlier power from NTPC," said V S Verma, a representative of Central Electricity Regulatory Commission (CERC) at the seminar, hinting at the opposition of Odisha to price pooling of coal and power generated out of it.

The state has been protesting the use of domestic and imported coal in NTPC power plants, citing that it would escalate generation cost despite the fact that Odisha possesses abundant coal reserves, which accounts for 25 per cent of total deposit in India.

"There has been no change in our views (regarding price pooling)," said Jena.

NTPC supplies nearly 1000 Mw power to the state grid, out of total power availability of 2,600 Mw in the state, from its various plants located inside and outside Odisha.

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