Karnataka to set up power plant in Chattisgarh

After striking a deal to purchase 100 MW of power from Chattisgarh, electricity-starved Karnataka is now moving towards establishing a 2,000 MW power plant in that state.

Karnataka Chief Minister B S Yeddyurappa, who held talks with his Chattisgarh counterpart Raman Singh in Bangalore, told reporters yesterday that the two states would be inking a Memorandum of Understanding (MoU) in the regard on July 24.

Raman Singh, who is convalescing at a nature cure hospital on the outskirts of Bangalore, is understood to have responded positively to Karnataka’s initiative to set up a thermal power plant and suggested a 2,000-acre plot at Godhna in Chattisgarh for the purpose, thus marking a novel inter-state understanding in the area of power generation.

After the discussions between the two Chief Ministers, talks have begun at the official level with Karnataka Chief Secretary Sudhakar Rao getting in touch with his counterpart in Chattisgarh.

The Electricity Board and Electricity Regulatory Commission of Chattisgarh too have come into the picture for discussions relating to the modalities for construction of the power plant and transfer of electricity generated from the proposed thermal power plant to Karnataka.

Karnataka, which is establishing a power plant outside the state for the first time, is expected to meet its increasing demand for power through this unique project, Yeddyurappa said.

The first phase of the project envisages generation of 1,000 MW of power in 40 months time. During the second phase, another 1,000 MW will be generated. The total cost of the project is expected to be around Rs 100 billion.

Yeddyurappa has thanked Raman Singh for responding positively to Karnataka’s request for assistance in setting up the thermal power station and hoped that the state would overcome the acute power scarcity it was suffering from.

The Karnataka Government’s proposal to set up a thermal plant in Chattisgarh comes close on the heels of Raman Singh’s promise to spare 100 MW of surplus power to Karnataka.
Though Karnataka had submitted a letter seeking 500 MW of power to tide over its immediate crisis, Raman Singh said his Government will be able to supply 100 MW straightaway from the next week. Singh has also promised to consider supply another 100 MW of power after studying the availability of electricity in his state.