NEW DELHI, March 9: A host of domestic and foreign companies, including Larsen and Toubro (L&T), Jaiprakash Industries, Energy Kvaerner of Norway and Voith Hydro of Australia, have approached the National Hydro-electric Power Corporation (NHPC) for undertaking joint development work of the Rs 2600 crore, 510 MW Teesta V hydro electric project in Sikkim.NHPC chairman and managing director Yogendra Prasad told The Financial Express that NHPC has already obtained techno-economic clearance from the Central Electricity Authority (CEA) for executing this project. However, owing to high cost of the project, NHPC has decided to take it up in the joint sector.
Prasad said as compared to the private sector participation in this project, NHPC is more interested in the government contributing 50 per cent towards equity in this project and is in talks with the nodal ministry over the equity infusion. The equity infusion by the government during 1997-98 was Rs 690 crore for other ongoing schemes of NHPC,highest ever contribution by the government towards its equity.
A final decision on whether the new joint venture partner for this project will be from the private sector will be done only after the new government assumes power.
It may be noted that the 510 MW Teesta V project was given TEC clearance by CEA in 1993 at an estimated cost of Rs 1445.96 crore. However, with delay in execution of the project, the cost of this project has already escalated to Rs 2600 crore. This project envisages utilisation of Teesta river water for power generation. Issues like land acquisition are yet to be sorted out with the state governments.
NHPC operates seven projects with a total installed generation capacity of 2133 MW and accounts for 8 per cent of the total hydel capacity and 2 per cent of the total installed power generating capacity of the country. The performance of the generation stations of NHPC for the past three years, according a recent review done by the government, shows a consistent high capacityutilisation, exceeding the target.
Apart from the existing operating projects, NHPC is currently implementing two projects viz. 60 MW Rangit project in Sikkim and 390 MW Dhulasti project in J&K. Both these projects are expected to be commissioned during the ninth plan, by 2002.
However, both the projects have already suffered heavy time and cost overruns. While the project cost for Rangit project was originally estimated to cost Rs 164 crore and was expected to be commissioned by March 1995, the current revised cost has risen to Rs 413 crore and is now expected to be commissioned by March 1999.
The Dhulhasti project was planned with bilateral assistance and the work was expected to be completed within 57 months. Due to adverse law and order conditions, the project was stopped in 1992. The original cost estimated was Rs 1263 crore, whereas the revised estimate is Rs 3987 crore and revised schedule of commissioning is March 2001.
Other new projects planned by the company includes, the 710 MW Koelkaroproject in Bihar for which the financing is yet to be tied up by NHPC and the indications are that even this project will taken up jointly with private sector participation. Other new projects are 300 MW Chamera II project in Himachal Pradesh and the Dhauliganaga project in Uttar Pradesh which is posed for assistance from the OECF.
