A Small Hydro Electric Project (SHEP) with 4-MW electricity generation capacity would be set up on the Indra river in Nuapada district. The State Government has signed an MoU with the Smile Energy Pvt ltd based at Bhubaneswar for establishment of the project.
An MoU initially signed in 2009 for 3-MW electricity generation was revised to 4 MW in November 2013.
The State Technical Committee at its 52nd meeting held in November 2012 had deliberated on the issue and related cost of the project and cleared the proposal for 4 MW. The Techno Economic Clearance of the proposal with an estimated cost of `24 crore at the rate of `6 crore per MW was accorded in July 2014.
According to the MoU, the developer would bear the cost of the project and sell the power to a State-designated agency by its own arrangement. The company would pay wheeling charges if any to the State-designated agency, presently the Gridco, and bear the transmission loss as approved by the OERC for wheeling of power. Besides, the company is to supply 12-per cent free power to the State-designated agency.
However, the administrative and functional control of the power generating stations would vest with the company. The developer has agreed to give equal preference in employment to permanent residents of the locality.
The source of water for power generation is the lower Indra Irrigation Project (lIIP) located at Tikhali village of Khariar block.
The State Government has agreed that the developer would not pay any royalty to the Government for drawing water for its non-consumptive use in power generation for the first five years of operation. Royalty would be paid at the full prescribed rate in subsequent years.
But it is agreed that water for power generation should not unreasonably be withheld unless circumstances so exist like drought, famine, floods and other unforeseen developments.
The company, on the basis of the MoU and the Government order for establishment of the proposed SHEP has applied to the Khariar Tehsildar for allotment of 10.3 acre of land at village Badamaheswar of Khariar block to construct the project consisting of a surge tank, a bypass pipe, a turbine chamber, a tail race channel, an office building and employees’ quarters, etc. The land on which the power generating station would be located would be leased to the company for a period of 30 years.
"We had heard long back that a power generation unit will be established but are not aware that the land would be allotted in our village," said the villagers of Badmaheswar.