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DEC 26 2012

Cabinet nod for two key power sector proposals

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 26th DEC 2012

The state cabinet on Monday gave its approval for the creation of Bihar Grid Company Ltd for which an agreement would be signed between the Bihar State Power (Holding) Company Ltd or its associate company and Power Grid Corporation of India Ltd (PGCIL), in a bid to strengthen the power transmission system in the state.

Giving this information after the cabinet meeting, principal secretary, cabinet coordination, Vijoy Prakash, said the decision to set up such a company was recently taken at a meeting to review different transmission projects in the state. The new company would function on build, own and operate (BOO) basis for strengthening the power transmission system in the state. An efficient power transmission system is expected to enhance power availability in the state, he said.

The cabinet also approved a proposal to sign a memorandum of understanding (MoU) with Sutlej Hydro Power Corporation, a joint venture of Himachal Pradesh government and the Union government, for transfer of Buxar thermal power project at Chausa to it from the Buxar Electricity Company Private Ltd. Sutlej Hydro Power Corporation is expected to get coal linkage for this 1320MW (2X660 MW) project.

Prakash said that under the MoU, Bihar would have 85% share of the power generated from Chausa project whereas Sutlej Power Corporation would get the rest 15%. The site selection and geo-technical research for the project have been done and a detailed project report has already been prepared. Airport Authority of India's clearance regarding the height of the chimney of the thermal power station and water linkage clearance from the Central Water Commission have already been taken, he said.

The cabinet decided that the state government would bear the difference between the cost of solar power purchased from solar power companies and the cost of power purchased from conventional thermal power companies under the scheme "Niche Machli Upar Bijlee".

The difference of cost would be measured on the basis of price of power purchased by the Bihar State Power (Holding) Company Ltd from a 150MW solar power firm and a 100MW conventional thermal power firm, through competitive bidding, Prakash said. This is to be done to promote solar power generation under the Renewable Energy Source Promotion Policy, he added.


Bihar Power Grid Grid Renewable Energy Coal India Limited Energy CIL Power Electricity

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