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Thursday, Apr 04, 2002

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DVC gets CEA nod for Mejia extension

Our Bureau

KOLKATA, April 3

THE Damodar Valley Corporation (DVC) has received techno-economic clearance from the Central Electricity Authority for the fourth unit of Mejia Thermal Power Station (MTPS).

Sources said that the DVC board was set to formally approve the project at its meeting this week, after having given its in-principle nod earlier. The cost of the 210 MW project has been pegged at around Rs 700 crore since most of the facilities already exist at the site where three 210 MW units are already operational.

Although DVC is now eyeing the joint venture route for implementing its future projects, the Mejia extension unit would be implemented with internal resources, according to sources.

Bharat Heavy Electricals Ltd (BHEL) would be executing the project and a letter of intent has already been issued to it. Sources said that this project was in the DVC's basket of seven new projects it hoped to add in the Tenth Plan period.

"DVC, which had earlier envisaged a capacity addition programme of only 1,960 MW in the 2002-07 period, was asked by the Union Power Ministry to add at least 5,000 MW. Accordingly, it identified greenfield projects involving a total capital outlay of Rs 25,941 crore.

Meanwhile, the multi-utility corporation has once again started regulating power supplies to the RPG-controlled CESC, on account of non-payment of dues amounting to nearly Rs 70 crore as on March 31.

DVC, which had restricted supplies to the private utility in January this year, had decided to curb supplies for four hours daily. CESC, which buys around 210 million units of power, has piled up over a year's billing in arrears.

A DVC release said the regulation was being done on the basis of an order passed by the Supreme Court on March 18, giving "liberty to DVC to take action".

Earlier, CESC had obtained a stay order from the Calcutta High Court barring restrictions on supplies.

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