Water availability to determine fate of new power projects
BS Reporter / Kolkata/ Bhubaneswar April 23, 2010, 0:44 IST

The Orissa government has made it clear that it would consider setting up of new power projects in the state if adequate water sources are available to support these ventures.

Leaving the onus on the project proponents to obtain permission for water use from the water resources department, the energy department has said it would take up scrutiny of new power generation proposals if they are equipped with this permission.

Sources said, the state envisages generation capacity of 50,000 Mw in the next few years (including the proposed expansion of NTPC) and for this, the water requirement is estimated at about 2000 Cusecs.

Besides, there are other issues like fly ash generation which is estimated in the range of 100 million tonne per annum (mtpa) and carbon emission to the tune of 250 million tonne per annum.

Pending concrete strategy to deal with these problems, the task force on power headed by the energy secretary today deferred its decision on ten new and expansion projects..

Availability of water for industrial projects has become a critical issue with the government deciding not to allow new power projects along river Brahmani, where most of these projects are concentrated because of its proximity to the Talcher coal belt.

Simultaneously, the allotment of water from river Baitarani is also being rationalised.

As a result, those projects whose fate now hinges on balance include the 1320Mw (Rs 6600 crore) power plant of NSL Nagapatanam Power Ltd, 1320 Mw (Rs 7355 crore) project of Utkal Power Ltd (IMFA group), 2640 Mw (Rs 13,200 crore) project of Sterlite Energy.

Similarly, K U Projects’ 1320 Mw (Rs 7260 crore), Arati Steel’s 1050 Mw (Rs 4860 crore), Madhucon’s 1320 Mw (Rs 5614 crore), Visaka Thermal’s 1050 Mw (Rs 5400 crore), Sree Metalicks’ 540 Mw (Rs 1928 crore), Konark Kranti Energy’s 110 Mw (Rs 430 crore) and Primo Power’s 60 mw (Rs 300 crore) projects have been pushed into uncertainty.