NTPC drops 4,000 MW UP power project, moves it to MP
12 Jul 2010
State-owned National Thermal Power Corporation has dropped its proposed 4,000-MW power plant in UP due to differences with the state government, and instead moved the coal-fired project to Barethi in MP.
According to a report in The Economic Times quoting a senior unnamed company official, the MP government has assured land, water and fuel for the project and the company is now conducting site-specific studies.
According to the report, the official said, the company was preparing the feasibility report for the 3,960 MW project.
NTPC had originally planned a 3,960 MW supercritical thermal power project in UP at the instance of the prime minister, who wanted a power plant in the Bundelkhand region, the report said.
However, the project had to be dropped as differences cropped up with the UP government over usage of electricity generated by the project according to the report.
The UP government insisted that the entire power produced from the project be allocated to UP, which is not allowed under the rules that permit only a maximum of 50 per cent of the electricity generated to the state where the plant is being set up.
The report said, the state government was also not agreeable to allocating land and water for the project and instead wanted the company to set up the project in a joint venture with the Uttar Pradesh Power Corporation Ltd.