NTPC, Punjab ink pact for major power project

State-run National Thermal Power Corp Ltd (NTPC) on Thursday signed a memorandum of understanding with the Punjab government that the company has executed a memorandum of understanding with the government of Punjab and Punjab State Power Corporation Ltd for setting up a 2,640 mw (4x660 mw) coal-based thermal power project at Gidarbaha in the state.

According to NTPC, it will be set up as regional power project and will be the first power project in the state by NTPC. The cost of the project has not been disclosed.

This will be the biggest thermal power project in Punjab, meant to help develop ancillary industries and provide employment to thousands. Punjab chief minister Parkash Singh Badal has been making consistent efforts to get investment in Punjab from entities under the control of the union government, and it is after 40 years that it has been able to get such a huge public sector investment.

Punjab has agreed to facilitate acquisition of land and allocation of water. It has conveyed in-principle clearance for about 2,316 acre and 125 cusecs of water to NTPC. The state has already issued a notification under section 4 of the Land Acquisition Act for 2,316 acres for the project.

At least 50 per cent of the power generated from the plant would be allocated to the Punjab State Power Corporation, which would provide to NTPC all the reports for the specific studies and investigations for preparation of its feasibility report. The cost incurred on all such reports would be reimbursed by NTPC.