The Maharashtra government on 4 April 2005 signed
agreements with eight leading power companies for new generation projects
aggregating 12,500 MW. These projects costing Rs.50,000 crore will come up over
the next five years.
| Promoter |
Capacity
(MW) |
| Reliance Energy |
4,000 |
| Tata Power |
1,500 |
| Ispat Group |
1,000 |
| Essar Group |
1,500 |
| Spectrum Power |
500 |
| GMR Group |
1,000 |
| Jindal Group |
1,000 |
| Central India Power Co |
2,000 |
| Total |
12,500 |
The development follows the power crisis that
Maharashtra is facing with MSEB unable to cope up with the growing power
demands.
As per the MoU, the Maharashtra government will
assist these power producers in acquiring land and establishing fuel and water
linkages. It will also offer fiscal incentives like stamp duty and octroi duty
exemptions and lower tax on electricity sales.
The power producers will have to sell half the
power produced to any customer within Maharashtra, not necessarily to the State
Electricity Board.
The MSEB will purchase power from these companies
at a rate approved by the Electricity Regulatory Commission through competitive
bidding. However, the government will not be bound by any
"take-and-pay" mechanism.
The State Government has assured the power
producers, payment guarantees for up to 2,000 MW or 50 per cent of power
purchased by MSEB in the first five years.
The state expects the power companies to submit
detailed project reports within the coming six months. It hopes that the
projects will achieve financial closure in a year's time.
It is estimated that the state will experience a
power shortage of 7,700 MW by 2010.