Orissa to ramp up power generation to 52,000 MW by 2017

Stung by widespread criticism from opposition and experts for its mismanagement of power generation in the state in the last one decade.Naveen Patnaik is aggressively pursuing the MoU signing companies to complete their power plant as per the deadline. The state government also has taken a move to cancel the MoUs of the non-serious power utilities.

If all goes well as per the plan, the state will produce about 52,000 MW power by the end of the next five year plan (2012-17) and once again emerge as power surplus state. The state government also is ramping up basic infrastructure required for evacuation of power to different nodes. For this it proposes to invest Rs. 8752 crore for the construction of nine High Transmission Lines [HTLs] in the next five years to evacuate power to other parts of the country after meeting the demand for power in the state. Official sources indicated that the construction work for HTLs would begin soon after monsoon.

Soon after Orissa pioneered sweeping reforms in power sector, many private players had evinced keen interest to set up power plants, mostly coal based as the state has huge deposits of coal. Already 26 power companies in private sector have singed agreements with the state government to set up thermal power plant with an installed capacity of 32,000 MW.

The central PSU [NTPC] will set up two plants at Gajamara in Dhenkanal and Darliparli in Sundergarh districts respectively to generate 6400 MW. Besides, the state has agreed to host three of the five new ultra mega power projects (UMPPs) of 4,000 MW each envisaged by the central government that could be structured through special purpose vehicles, promoted by Power Finance Corporation.

Similarly, two decades after confining itself to only mining, the state-owned Orissa Mining Corporation [OMC] is now diversifying into power and coal mining sector by setting up 2000 MW thermal power plant near Rengali in join venture with Orissa Hydro Power Corporation [OHPC] with an investment of Rs 8000 crore. The JV Company, to be known as Orissa Thermal Power Corporation Ltd [OTPCL], will have 50% equity from each.