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Orissa scraps MoUs of three IPPs

Thursday, 26 Sep 2013

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The Government of Orissa is likely to scrap MoUs signed with three independent power producers (IPPs), due to inordinate delay in implementation of their power projects.

Orissa will scrap the MoUs with Vijayaa Ferro & Power, Adhunik Power & Natural Resources, and Astaranga Power. These companies have not even signed power purchase agreements (PPAs) with Gridco. The proposed projects are about to be sealed since the state government has decided in principle to cancel their MoUs.

Both, Vijayaa Ferro & Power, and Adhunik Power & Natural Resources had signed MoUs with the state government in April 2010. Vijayaaa Ferro & Power had proposed a 120 MW plant at Turlakhamar in Kalahandi district at an investment of Rs 550 crore. Adhunik Power & Natural Resources' 1,320 MW power project was to come up at Biramaharajpur in Sonepur district at a cost of Rs 8,079.74 crore.

Astaranga Power had entered into an MoU with the state government in February 2009 for the establishment of a 2,640 MW coal-fired power plant at Astaranga in Puri district, at a cost of Rs 11,200 crore.