In addition to this, NTPC has offered to set up at least three pump storage projects with a capacity of around 500 mw each in western Maharashtra and Vidarbha region. These sites have been identified by the Central Electricity Authority.

Top NTPC sources told The Financial Express that the coal projects would be implemented in phases through an internal accruals as well as debt.

Initially, NTPC proposes to set up 500 mw each capacity during first phase in three years. Union power minister Suresh Prabhu has convened a meeting early next week to discuss these issues with NTPC's senior officials.

These sites were identified during preliminary studies conducted by an NTPC team. The survey has been carried out in the wake of corporation's offer to the state government and MSEB for setting up such projects in the state.According to NTPC sources, Jaigad would be an ideal site for the import of coal in view of its strategic location in the coastal Ratnagiri district. As far as Vidarbha region is concerned, the pithead projects can be a viable proposition in view of the abundant coal reserves and adequate water supply there.

"A techno-economic feasibility study and detailed project report for coal projects would be carried out only after the state government and MSEB give their go-ahead," NTPC sources said and added that similar procedure would be adopted for the implementation of pump storage projects. These sources informed that the state government had already carried out necessary surveys on pump storage projects.

NTPC's technical team headed by its director (technical) would visit these sites in the state and also in Goa from January 23 to further weigh the possibilities. According to sources, Goa, although had conducted a survey for the setting up of coal project with a total capacity of 2,000 mw in the past, could not implement it.

MSEB sources reiterated its claim that NTPC would be welcomed to set up these projects on an condition that "it should sell entire power to the MSEB which at present has to carry out daily load shedding to overcome peak demand shortage." However, NTPC sources said that MSEB would benefit largely from these projects in view of new directives issued by the Centre. According to revised directives, the state which would house NTPC project would get a "lion's share" during sale of power.

Earlier, NTPC had to provide 10 per cent from the generated power in addition to 15 per cent unallocated quota to the concerned state. Furthermore, of the remaining 75 per cent, the state was entitled to get additional 10 per cent and rest to be distributed to other states through a national grid.

NTPC's offer deserve a special significance especially when a section of the Democratic Front government in Maharashtra has stressed the need to rope in NTPC to purchase excess power generated by the Dabhol Power Company. However, Mr Prabhu has already made it clear that it has yet to receive any formal proposal from the state government and MSEB in this regard.