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Orissa signs MoU with 10 IPPs, REL stays away

Wednesday, 27 Sep 2006
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Reliance Energy on 26 September 2006, backed out of signing an MoU with the Orissa government for its proposed 12,000 MW power unit (Phase I) at Hirma in Jharsuguda district of Orissa even though the 10 other IPPs signed the MoUs with the state government.

The MoU with REL could not be signed due to conditions related to the clearance of over Rs.2,000 crore of dues owed by three Reliance (Anil Ambani)-owned distribution firms to Grid Corporation of Orissa (Gridco).

The Orissa Electricity Regulatory Commission (OERC) has directed REL to pay the dues in 20 installments over a period of 10 years and insisted on the inclusion of a clause in the MoU which stipulated that the company could not go in for land acquisition for the project unless it cleared the dues.

The 10 IPPs which signed the MoUs include:

Company Capacity (MW) Cost
(Rs.crore)
Location
KVK Nilachal Power 600 2,580 Angul/Dhenkanal
Monnet Ispat Energy 600 2,852 Angul
Visa Power 1,000 3,698 Angul
CESC 1,000 4042 Neulpoi (Dhenkanal)
Tata Power Co 1,000 4,348 Naraj/Marthapur (Cuttak)
Essar power 1,000 4,500 Talcher, Angul
Jindal Photo Films 1,000 4,525 Pirasahi, Angul
Lanco Group 1,320 4,500 Talcher, Angul
Bhushan Energy 2,000 8,483 Angul
Sterlite Energy 2,400 7,481 Bharkhamudna, Jharsuguda

Phase I of Reliance 12,000 MW comprised generation of 4,000 MW at an investment of Rs.16,236 crore and the other 10 thermal power projects envisaged a combined generation capacity of 10,900 MW at an investment of Rs.45,000 crore.

Also See:

Orissa government clears 11 thermal power projects (21-Sep-06)

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