The nation’s leading PSU hydro power company Satluj Jal Vidyut Nigam (SJVN) limited is now considering the option of buying one of the biggest private sector hydro electric power plant 1,000 MW Karcham-Wangtoo project owned by the Jaypee Group in Kinnaur district, Himachal Pradesh.
The PSU is exploring all possibilities to own the 1,000MW hydro electric power plant which is situated upstream of river Satluj from its flagship 1,500MW Nathpa-Jhakri hydro electric power plant. Disclosing this SJVNl CMD RP Singh said that company is exploring its possibilities to own the 1000 MW Karcham-Wangtoo hydro power plant of Jaypee Group and discussions are being held among top officials.
He added that company will proceed only after due permissions from central government the largest stake holder of the company. “The Karcham-Wangtoo is very strategic to the SJVNl’s Nathpa-Jhakri project, as it is situated upstream the river Satluj,” he added. Meanwhile according to sources, Jaypee group plans to sell its two hydropower plants in Himachal Pradesh- the 1000 MW Karcham-Wangtoo and 300 MW Baspa project, within the current financial year in order to reduce its debt of over Rs. 64,000 crore.
The total project cost for the two operating plants of Karcham-Wangtoo and Baspa has been estimated at about Rs 9000 crore including equity. Jaiprakash Power Ventures ltd, an arm of Jaiprakash Associat-es, is a listed company operates the two hydro power plants and is the largest private player in the hydro power sector.
The Karcham-Wangtoo project has been approved for a 1000 MW capacity but the four turbines installed at the underground plant, which when operated at full capacity are in a position to generate 1200 MW of power. The 300 MW Baspa plant is located on river Baspa, a tributary of river Satluj River and is one of India’s first hydro power plants in the private sector that was commissioned in 2005-2006.
Sources also said that several companies are in fray to buy the hydro power plant including one Abu Dhabi Water and Electricity Authority (ADWEA), which is said to be in advanced stage to acquire both the projects. Power rates in the country having fallen from Rs 7 per unit to Rs 2 to Rs 3 per unit over the last five years and many of the hydro plants in Himachal Pradesh are either operating below capacity for not finding energy buyers.