Confronted with the twin problems of lack of coal deposits and growing opposition from the environmental groups to setting up of power projects in the State, the government has effected a major shift in its policy towards power generation units.

The State government now wants to encourage setting up of mini power projects of around five MW capacity in various taluks. On behalf of five power distribution companies in the State, the recently formed Power Company of Karnataka Limited (PCKL) has invited bids for setting up the mini power projects.

Speaking to Deccan Herald, PCKL CMD Bharat Lal said the idea behind floating bids for mini-power projects was to “decentralise” power generation in the State. “At present the State is facing a power shortage of nearly 20 per cent and the demand is rapidly increasing.

As we don’t have coal deposits, we have to depend upon other States or countries for setting up thermal power plants. So we want to encourage setting up of these mini units, let them be hydro, biomass, solar or wind-based, on Build Own Operate (BOO) basis”, Lal stated.

 Moreover, it is expected that these mini projects, besides ensuring reliable and quality power at taluk levels, would minimise the transmission losses which hover around 4.59 per cent in the State. “Now power generated at one corner of the State is being consumed at some other corner. This results in transmission losses.

If we use locally generated power, the transmission losses could be reduced to some extent,” he said, adding that these mini power projects would also create job opportunities for local people. While the life span of the project is said to be 25 years, the bidder is free to select the type of fuel , technology and location within taluks.

The bidder has to quote the tariff for supplying power for a period of 25 years considering the Carbon Credit.

Moreover, the bidder has to furnish documentary evidence in support of his technical and financial capabilities.

Asked whether the PCKL has carried out a “potentiality survey” before inviting bids, Lal replied in negative.

“Definitely there is a potential for setting up the projects. We want to see how the market is”, he said. Karnataka is said to be the first state in the country to take the initiative.