NEW DELHI: With an aim to revive the stressed power sector and encourage hydropower sector, the government on Thursday approved investment proposals worth over Rs 31,600 crore in four power projects. These projects, including coal-based thermal plants and hydro power, are likely to be operational by 2023-24.
The Cabinet Committee of External Affairs (CCEA) has approved investment of Rs 10,439.09 crore for the 2x660 MW Buxar Thermal Power Project in Bihar. The plant, which is expected to improve deficit power scenario in the eastern region, will be set up by SJVN Thermal Private Ltd, a wholly owned subsidiary of SJVN, a mini-ratna CPSU.
The meeting, chaired by Prime Minister Narendra Modi, also cleared investment proposal for a 2x660 MW Khurja Super Thermal Power Plant in Bulandshahr entailing an investment of Rs 11,089.42 crore and Amelia coal mine in Singrauli district of Madhya Pradesh at a cost of Rs 1,587.16 crore.
Power Minister RK Singh said that the Cabinet also approved recommendations of a group of ministers relating to stressed power projects. These recommendations included grant of coal linkage for short-term PPAs, allowing existing coal linkage to be used in case of termination of PPAs due to payment default by distribution companies and procurement of bulk power by a modal agency against pre-declared linkages.
Among the hydro power projects, the CCEA approved investment for acquisition of Lanco Teesta Hydro Power Ltd and the execution of balance work of the Teesta Stage-VI Hydro Electric Project by NHPC in Sikkim at a total cost of Rs 5,748.04 crore.
Besides, another Rs 4,287.59 crore was approved for the construction of Kiru Hydro Electric Project (624 MW) by Chenab Valley Power Projects Pvt Ltd in Jammu and Kashmir.In a fillip to the hydro power sector, the Cabinet approved a slew of measures including providing renewable energy status for large hydel projects and new funding provisions.