Central projects stalled as state digs heels in over 100 per cent power share

Similarly,the Neyveli Lignite Corporation (NLC) has firmed up the deal with the state government for 1,980 MW thermal plant at Ghatampur in Kanpur (dehat) district,but the agreement over sharing of power with state is yet to be finalised.

The state government is insisting on 100 per cent share in the power generated from both the plants.

NTPC has conveyed to the UP Power Corporation Limited (UPPCL) that it is willing to share only 75 per cent,subject to the regulatory approval from the Union Ministry of Power. The NLC against the state’s demand of 90 per cent is willing to share only 70 per cent of the power.

Earlier,NLC had indicated that it will go by the national policy or the Gagdil formula for sharing of power where the host state is entitled for 40 per cent share in the total power generated.

“NTPC and NLC are the power generators and they have to sell the power. So,both the Central PSU should have no problem in selling 100 per cent power to UPPCL. We are not demanding any favour or concession from them as we will pay them for the power procured from them,” said R K Johar,Chief Engineer (power purchaser agreement) of the UPPCL.

“There is nothing unreasonable in our demand.

Being a power deficient state,UP needs more power. The argument of Gagdil formula is only to deny adequate share to us,” added Johar.

According to him,UP will give 12 per cent free power to Uttarakhand from the 330 MW Stringer hydro power project in the hill state,which is being executed for UP by the JP group.

“Against the norm of 40 per cent power as per the Gagdil formula,the Centre has allowed 50 per cent power share for the host state where the Ultra Mega Power Projects with 4,000 MW capacity are being set up,” said Johar.

A UPPCL official argued that NTPC has agreed to share 75 per cent power with UP from the 1,980 MW Meja thermal power plant,which is under execution in Kaushambi district near Allahabad.

Hence,there should be no problem in enhancing the share to 100 per cent from the Chitrakoot project.

“UPPCL has again written to NTPC and the secretary of power at the Centre,seeking 100 per cent share in the power generated from the Chitrakoot plant. We are waiting for their response,” said Johar.

On power sharing in the NLC project,Navneet Sehgal,CMD of UPPCL,said negotiations with NLC are on.

Once it is finalised,the issue will be sent to the energy task force headed by the state’s chief secretary and then to the cabinet for approval. After the approvals,decks will be cleared for signing the agreement for a joint venture,Sehgal said.