The Hindu Business Line : Decision on Sasan project soon: Shinde

New Delhi, June 27 The 4,000 MW Sasan ultra mega power project, which has been hanging fire since December last year following a disputed bidding process, could see a resolution soon, Power Minister Mr Sushilkumar Shinde said on Wednesday.

Speaking to newspersons at a FICCI function, Mr Shinde said that a Group of Ministers is examining all legal options to resolve the issue soon.

“We will get the result soon. This is a project where the bid value of Rs 1.19 per unit is very competitive,” he added.

He also said that the Power Ministry would approach the Cabinet with a draft policy on hydel projects shortly.

The policy aims at promoting hydel projects, encouraging private investment and addressing environmental concerns.

Mr Shinde said that the power sector would need an investment of up to Rs 10 lakh crore to meet the 76,000 MW capacity addition target in the 11th Plan, along with corresponding transmission and distribution network improvement.

He added that the target may not be met even if BHEL were to double its manufacturing capacity, making a case of the creation of another State-owned equipment manufacturer on the lines of BHEL.

The Power Ministry had earlier placed much of the blame on the company for slippages in the Centre’s generation capacity addition targets during the 10th Plan.

A total of 22,000 MW of generation capacity was added during the last five years, against a target of 41,000 MW.

BHEL, on its part, has dismissed the statements claiming that delays in equipment supply arose mainly due to bunching up of orders by power project developers during the last two years of the Plan period.

It has also said that it has embarked on a Rs 3,200-crore expansion plan to enhance capacity from 6,000 MW to 15,000 MW by the year 2010.

On NTPC’s proposed foray into equipment manufacturing, Mr Shinde said: “If we find somebody else, we have no need to go to NTPC. We have to find an alternative (to BHEL).”

He called upon domestic firms to tap overseas technology for equipment manufacturing through increased foreign tie-ups.