The Hindu Business Line : TN, AP, Karnataka plan joint venture for 3,000-MW project

WITH power shortages looming large over most of the country and barely any fresh generation capacity in sight, three States have decided to take matter into their own hands.

In a unique experiment, the power utilities of Tamil Nadu, Andhra Pradesh and Karnataka are planning to forge a joint venture to set up a mega 3,000-MW gas-based power project on a cost-sharing formula in one of the States.

It will be for the first time that States are getting together to jointly promote and execute a project of this scale, which could cost about Rs 12,000 crore.

A high-level steering group, comprising Secretary-level officials from the three States and representatives from the Central Electricity Authority , PTC India Ltd and the Ministry of Power, has started groundwork on the project.

According to officials involved in the exercise, the States are likely to form a special purpose vehicle to execute the project.

The project is likely to come up either in Andhra Pradesh or in coastal Tamil Nadu, depending on the fuel source. Although the proposal is in the initial stages, two sites have been proposed.

The power station could be set up either in the Kakinada region in Andhra Pradesh, if gas is to be sourced from the Krishna-Godavari basin, or in north of Chennai, if the project is to be run on imported fuel, which will be brought in using the Ennore Port facility, officials said.

PTC India Ltd has been entrusted with the task of arranging for the fuel linkages, officials involved in the exercise said.

Financial institutions, led by State-owned Power Finance Corporation, have expressed interest in funding the project, mainly because the electricity boards of Karnataka, Andhra Pradesh and Tamil Nadu are believed to be among the best managed State-owned power utilities in the country, Government officials said.

According to Government sources, the project was mooted at a review meeting of the States and the Ministry of Power officials last month.

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