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19/08/2011

Essar Energy to sell power to Bihar

.Patna,(BiharTimes): Essar Energy would soon sign an agreement to sell one-fourth (that is 300 MW) of the 1,200 MW power to be generated from its Jharkhand-based Tori station to the Bihar Government.
In a statement the company said that the power purchase agreement (PPA) with the Bihar State Electricity Board (BSEB) will be signed shortly.The BSEB has issued Essar Energy’s subsidiary Essar Power Jharkhand Ltd (EPJL) a Letter of Intent (LoI) to purchase the power over a 25-year period.

Under the terms the 300 MW PPA will involve EPJL supplying power at a levelised tariff of Rs. 3.28 per unit, net of transmission costs.


This will be the second 25 year PPA to be signed with the BSEB for Tori-I. The first was inked in July 2010 for 450MW of capacity at a levelised tariff of Rs. 2.64 per kWh or unit, the company said.


Tori-I is a coal fired power project situated in Latehar district. It consists of two generation units of 600 MW each. Tori-II is an additional 600 MW project.

Comment

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POWER CRISIS : Perennial melodrama
Bihar has viable ways to generate electricity on commercial scale.There has never been a brain storming on the ideas of power production with the available vast resources of Bihar. The corrupt government of the state would however go for purchase of electricity from a private company to be able to enjoy the huge bribes offered in such deals allowing the blood sucking companies to levy astronomical charges on the general populace at the end of the day.The lack of accountability on the part of the government and nonexistence of enforcement mechanism allows the power-crisis-melodrama to continue since ages.I have never seen any regime in Bihar changing their instance towards bringing electricity to the state in practical ways. Why buy something which you can generate ? And I am sure Nitish will turn down every offer to make the lives of Biharis easy by generating electricity in Bihar using her own resources.The ideas and solution to the perennial power problem exists in the minds of some of the scientists and inventors of Bihar and so does the resistance from the draconian regime.Remember the power crisis in Bihar is orchestrated and such a crisis can be overcome within months not years.
Arshad Mohsin
NRB (Kuwait)

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I work with a steam turbine manufacturer and so understand that how difficult it is for a govt or organization to build a power plant especially if you don't have a secure coal reserve. But at the same time govt can have different options to solve the power crisis like what we have in Bihar. This step is one of those. People of Bihar need more like these. I observed some silent good steps taken by this govt in last few years including work on transmission line and upgrading the grids . Now the PPA with Essar shows that govt is having a vision on how to resolve the power issue. Kudos to Nitish govt.

Rajan Prakash

 

 

 

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