Chief Secretary Rajiv Gauba clarified on Thursday that the objective of the proposed arrangement with NTPC is to optimise the potential of power generation in Patratu which remained untapped for the last several decades. He also explained that the Government Committee has recommended setting up of a just Joint Venture between the State Government and NTPC.
“It is often been misunderstood that the proposal is the take-over of PTPS by NTPC. This is not correct. The recommendation of the committee is for a joint venture where State Government will hold 26 per cent equity stake without actually infusing any investment during the entire setting up and commissioning of the 4,000 MW expansion units,” said Gauba.
A high level committee under the chairmanship of Rajiv Gauba was constituted by the State Government in February this year to examine the issue of proposed participation of NTPC for performance improvement and expansion of Patratu Thermal Power Station (PTPS). On Thursday, the committed held its final meeting.
As per the proposal the joint venture in its Phase I set up 3x800 i.e. 2,400 MW and in Phase II 2x800 i.e. 1,600 MW at Patratu. For producing 4,000 MW in the current setup of PTPS the State would have required an investment of around Rs26,000 crores. Whereas the agreement would help Jharkhand in holding 26 per cent JV partner and the State would start earning revenue from the from 2019-20 without investing any money in the entire expansion project.
Currently, PTPS is generating 110-120 MW which will increase to 2,400 MW (3X800 MW) in 2019 in Phase-1 and will be further increased by 1,600 MW (2 X 800 MW) in Phase-II. During the setting up of Phase I generation from PTPS would be enhanced to 325 MW with improved plant load factor. It is expected that with the expansion plan power requirement of the entire State would be met by 2025.
The Chief Secretary said that the average levied tariff of power would be Rs2.73 per unit which is significantly lower than the average tariff of Rs3.90 per unit at which the State is procuring power currently.
“By using latest super external technology in the Joint Venture Company land usage has been optimised in such a way that the entire expansion project shall require only 1,500 acres out of the present available land of 6,000 acres. The balance land shall remain with State Government of Jharkhand which can be commercially used to generate revenues,” said the CS.
Further the reservoir would be held by the Government and the JV company will buy the water by paying revenues. More importantly, all the employees of the PTPS shall be retained by the JVC and there will be no retrenchment. The economy of the area will get a boost giving rise to increased job opportunities.
“Such huge project will also have the “Bubble Effect” in the from of creation and growth of ancillary industries in the small scale industry sector in the vicinity of the plant thereby adding to the development and income growth of the local people” said Gauba and added that about ten other States in the country are following this model of JV with NTPC like UP, Odisha, Delhi, Bihar, Haryana, Tamil Nadu.
Chairman of NTPC Arup Roy Choudhary highlighted the credentials of NTPC and said it is the largest power generator in India. He said that this project will increase the availability of power with improved operating parameters in Jharkhand. Principal Secretary of Finance Amit Khare, Principal Secretary of Energy Department SKG Rahate and other senior officials were present in the meeting.