SJVN Thermal Power Project Cost Escalates Due to New Land Law
Project cost of the 1,320 MW thermal power project at Buxar in Bihar constructed by Satluz Jal Vidyut Nigam (SJVN) has gone up by about Rs 3,591 crore mainly due to payment for land in accordance with the new Land Acquisition Act, SJVN officials today said.
Due to the cost escalation, power would now be sold at a rate of Rs 3.47 per unit, they said.
Earlier estimated cost of the Buxar thermal power project's two units of 660 MW each was Rs 6,000 crore, which has increased to Rs 9,591 crore now, R P Singh, SJVN chairman and managing director told reporters here.
The rate of electricity was earlier fixed at Rs 2.53 per unit which would now be hiked to Rs 3.47 per unit, he said.
A Memorandum of Understanding (MOU) for setting the green field 1,320 MW supercritical technology thermal power project at Chausa village in Buxar district was signed in January 2013.
The SJVN would sell 85 per cent out of the total power generation of 1,320 MW to Bihar to perk up power availability of the electricity-deficit state.
The project, coming up at Chausa, about 15 km from Buxar town, would require 1,048 acre of land.
Mr Singh and other senior officials of SJVN said re-evaluation of the land in accordance with new law was almost over and the same would be given to Buxar district magistrate for further action.
SJVN had made almost 80 per cent of the payment to private land owners before the new Land Acquisition Act came into being. Those who got payment for their land earlier would get payment as per revised rate in the light of the new law, Mr Singh said.
The SJVN CMD said he hoped the process of land acquisition would be over by the end of this year.
"If land acquisition process is completed by end of this year, the project will be finished on time in the 2018-19 financial year," he said.
Considering the importance of the project, SJVN was working on reaching an agreement with some cement companies for ash disposal, a condition for getting environment clearance, Mr Singh said adding, the project would get coal from coal mines in Birbhum district of West Bengal.
"In case of coal deficit, it will be imported," he said.
Established in 1988 as a single project company, SJVN today has presence in seven states besides in neighbouring countries Nepal and Bhutan, the CMD said.
Prime Minister Narendra Modi had laid the foundation stone of SJVN's 600 MW Kholongchu hydel power project in Bhutan on June 16 this year, Singh added.
