A committee under the Chairmanship of Rajiv Gauba, Chief Secretary,Jharkhand,was constituted by the state government earlier.The aim was to examine the issue of proposed participation of NTPC for performance improvement and expansion of Patratu Thermal Power Station (PTPS).
The committed held its final meeting today at Ranchi. Chief Secretary said that the objective of the proposed arrangement with NTPC is to optimize the potential of power generation in Patratu which remained untapped for several decades.
Gauba explained that the Committee’s recommendations were meant to set up a Joint Venture between the State Government and NTPC.
It is often been misunderstood that the proposal allows NTPC to take-over PTPS.This is not correct,said the CS.”The recommendation of the committee is for a joint venture where State Government will hold 26% equity stake without actually infusing any investment during the entire setting up and commissioning of the 4000 MW expansion units (Phase I 3 x 800 i.e. 2400 MW and Phase II 2 x 800 i.e. 1600 MW at Patratu ).
Generally the production 4000 MW in the current setup of PTPS would have required an investment of huge amount of around 26000 crores. Also, without investing any money in the entire expansion project, the Government of Jharkhand in the capacity of 26% JV partner shall start receiving revenues from the 4th year onward i.e. from 2019-20 and the cumulative accrual till 2024-25 shall be 1100 crores.
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. During the setting up of Phase I the generation from PTPS shall be enhanced to 325 MW with improved Plant load factor. By 2025, the power requirement of the entire State shall be fulfilled by the said expansion of PTPS”,said the CS.
Chief Secretary said that the average levelised tariff of power of the 4000 MW expansion plant shall be Rs. 2.73 paise pre unit which shall be significantly lower than the average tariff of Rs. 3.90 paise per unit at which PTPS is procuring power today.
By using latest super external technology in the Joint Venture Company (JVC) the land usage has been optimized in such a way that the entire expansion project shall require only 1500 acres out of the present available land of 6000 acres.
“The balance land shall remain with State Government of Jharkhand which the Govt. can commercially exploit to generate revenues. Further the water reservoir will be held by the GoJ and JV Company will buy the water by paying revenues to the State Government”,said the CS.
More importantly, all the employees of the PTPS shall be retained by the JVC and there will be no retrenchment,said the CS.The overall economy of the area will get a boost giving rise to increased job opportunities. Such huge project will also have the “Bubble Effect” in the from of creation and growth of ancillary industries in the small scale industry sector in the vicinity of the plant thereby adding to the development and income growth of the local people”,said Gauba.
Gauba also said that about ten states in the country are following this model of JV with NTPC. The state of UP, Odisha, Delhi, Bihar, Haryana, Tamil Nadu and others have witnessed this model to be very essential for their state.
Chairman, NTPC, Arup Roy Choudhary highlighted the credentials of NTPC and said it is the largest power generator in India. He said that this project will increase the availability of power with improved operating parameters in Jharkhand.
Principal Secretary, Finance Department,Amit Khare, Principal Secretary, Energy Department, Shri. Rahate, Director, Commercial, NTPC, Shri. I. J. Kapoor, Regional Executive Director, East-I, Shri. K.S. Garbyal and other officials were present in the meeting.