The Hindu Business Line : NHPC petitions Centre over Arunachal projects

The grievance
NHPC claims to have spent Rs 60 crore in preparing feasibility reports for three of these projects.
With no power purchase agreements or tariff based bidding in place, Arunachal has negotiated a higher quota of free power.

New Delhi , April 13

In what is emerging as a tussle between the public and private sector firms, National Hydroelectric Power Corporation (NHPC) has petitioned the Centre against the Arunachal Pradesh administration's decision to handover five mega hydel power projects to three private players — Reliance Energy, Jaypee Industries and DS Constructions. These projects had originally been allocated to NHPC for development.

NHPC story

NHPC, which claims to have spent around Rs 60 crore in preparing the feasibility reports for three of these projects, has alleged that the projects were now being given away "on a platter" to the private developers through the MoU (memorandum of understanding) route.

The NHPC Chairman and Managing Director, Mr S.K. Garg, said the company was in advanced stages of preparing DPR's for as many as three of the five projects that have now been handed over to private developers by the State Administration.

"We have already petitioned the Power Ministry against this," he said at the sidelines of a press conference here on Thursday.

State MoUs

The Geong Apang-administration in Arunachal Pradesh has signed MoUs with Reliance Energy, Jaiprakash Associates and DS Constructions for development of the five projects that would generate a total of 4,800 MW.

With no power purchase agreements or tariff based bidding in place, the State has negotiated a higher quota of free power from the private companies.

The Power Ministry had earlier asked NHPC to develop hydel capacities totalling 23,000 MW inArunachal Pradesh. This included development of seven projects.