Energy Task Force Approves Proposals for Four Thermal Power Units in Uttar Pradesh

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Researched by Industrial Info Resources (Sugar Land, Texas)--The government of Uttar Pradesh, through its Energy Task Force (ETF), has approved proposals to increase the generation of electricity in the state by building four new thermal power plants via the private sector.

The major power project will be the construction of a 1,928-megawatt (MW) power plant at Bargad, in the Chitrakoot district of Bundelkhand. The project originally was to be set up by India's largest state-owned power-generating firm, NTPC Limited (BSE:532555) (New Delhi), which planned to develop a 4,000-MW power plant.

The NTPC project ground to a halt after differences concerning the allocation of power from the project, with the state government requesting 100% of the power. Now the Uttar Pradesh state government is set to sign a memorandum of understanding with Bajaj Hindusthan Sugar and Industries Limited (BSE:507500) (Mumbai) for the construction of the plant.

In April this year, the state government signed a memorandum of understanding with Bajaj Hindusthan to set up a 1,980-MW thermal power plant in the Lalitpur district of Bundelkhand. The combination of the Bargad and Lalitpur plants will almost equal the ill-fated NTPC project.

Two other thermal power plants, each with 250-MW capacity, have been approved by the ETF. Parekh Aluminex Limited (BSE:532606) (Mumbai) has been approved to establish a thermal power plant at Farukkhabad, while Unitech Machines Limited (Gurgaon, Haryana) will establish a similar plant in the Auraiya district.

The ETF proposals are now scheduled to go before the state cabinet for final approval before the memoranda of understanding are signed with the respective companies.

Another 1,000-MW thermal power plant was approved by the ETF in the National Capital Region, in conjunction with the Delhi-Mumbai Industrial Corridor Development Corporation (New Delhi), which is a special-purpose government undertaking, under the proviso that 30% of the total power generated would be made available to Uttar Pradesh.

The ETF was established by the government of Uttar Pradesh in 2003 as part of the Power Policy 2003, which was aimed at providing reliable and cost-effective power to ensure the economic development of the state. The government constituted and empowered the ETF, to be headed by the Chief Secretary--currently Atul Kumar Gupta--and staffed with dedicated personnel with specialized technical, commercial, financial and legal knowledge.

The ETF acts as a single entity for the granting of all state-level approvals and clearances, while regularly monitoring and reviewing the progress and implementation of the state government's power policy.

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