Patna, May 15 : Bihar today handed over its three thermal power units to the NTPC, hoping to save more than Rs 800 crore every year.
A memorandum of understanding (MoU) in this regard was exchanged here in presence of Bihar Chief Minister Nitish Kumar and Union Minister of State for Power (Independent Charge) R K Singh.
As per the agreement, the thermal power units at Kanti in Muzaffarpur district, Barauni in Begusarai and Nabinagar in Aurangabad were handed over by the state to the NTPC, a Maharatna company.
MoU was exchanged between National Thermal Power Corporations Director (Commercial) A K Gupta and R Lakshmanan, Managing Director of South Bihar Power Distribution Company Limited (SBPDCL) and the Bihar State Power Generation Company Limited (BSPGCL), an official release said.
The MoU, which follows a cabinet decision taken to the effect on April 17 last, is expected to result in annual savings of Rs 875.06 crore for the state, the release said.
Speaking on the occasion, the Chief Minister said handing over of the three power units to the NTPC would facilitate improved power generation and availability of electricity to consumers at lower rates.
The Union Power Minister, who also represents Ara in the state in the Lok Sabha, hailed the decision to hand over the three units to NTPC and said it reflected the foresight of the Chief Minister.
The three thermal power units have been handed over to the NTPC on a 30-year-lease, the states Principal Secretary, Power, Pratyay Amrit told reporters later.