Battling against political and bureaucratic bottlenecks in implementing power sector reforms since the creation of the State, the Cabinet on Saturday took a significant decision towards long-term solution of the power crisis in the State by accepting a proposal of the energy department for setting up of a joint venture firm with the NTPC.
At a special meeting called at the Chief Minister's residence, the Cabinet gave its approval for a new firm - a joint venture of the Jharkhand Government, JUVVl, JUVUl and the NTPC - for the expansion and refurbishing of Patratu thermal power project. The new firm with a proposed name of Patratu Vidyut Utpadan Nigam limited will be generating 4000 MW electricity out of which 3400 MW will be given to the State, by 2024.
"In today's Cabinet meeting PTPS' performance improvement and a joint venture of the NTPC and the State Government power companies for setting up of 4000 MW (Phase 1 - 2400 MW and Phase II - 1600 MW) power plant was approved. The equity share in the joint venture will be: State Govt 26 per cent (Cashless) and 74 per cent and Jharkhand Government's stake will be through cashless money infusion," said Additional Chief Secretary, Cabinet Coordination, NN Pandey.
Principal Secretary, Energy, SKG Rahate said that the Phase I of the power project was expected to be complete by 2019-20 and the second phase would be complete by 2024. After the completion of the project the running plant will yield 100 per cent power for the State, while 85 per cent of the power from the expansion unit will be given to the State.
The power tariff is likely to be decided by the Central Electricity Regulatory Commission and the tariff in the State is likely to go down after production begins at the expansion plants. The average levied tariff of power would be around Rs 2.73 per unit which is significantly lower than the average tariff of Rs 3.90 per unit at which the State is procuring power currently, said Rahate.
Currently, PTPS is generating 110-120 MW which will increase to 2400 MW (3X800 MW) in 2019 in Phase-1 and will be further increased by 1600 MW (2 X 800 MW) in Phase-II. Also, the Principal Secretary said that the use of the latest super external technology will optimize usage of land during the expansion. "We have 6,500 acres of land in Patratu, out of which 2700 acres are occupied by the water body. Just 1850 acres of land is being allotted for the expansion project, "he added.
Principal Secretary, Finance, Amit Khare, present at the press meet at the CM residence, and Rahate also said that the project will give a boost to ancillary industries in the area and may generate employment on a large scale. They said that an MoU will be signed on Sunday for the setting up of the new power firm. A State that has not even added a single MW in power generation capacity after the setting up of TVNl in 1996 will witness far-reaching changes due to the power sector reforms, said Pandey.