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News updated at 2:49 AM IST

State, NTPC sign pact for Kudgi power plant

Last updated: 04 November, 2010
Bangalore, Nov 4, DH News Service: 23:33 IST

The State Government on Thursday signed a Power Purchase Agreement (PPA) with National Thermal Power Corporation (NTPC) Ltd for setting up a 4,000 MW (5x800) super critical thermal power generation plant at Kudgi village in Bijapur district.

'Power’ful Greetings: Chief Minister B S Yeddyurappa and Energy Minister Shobha Karandlaje greet Arup Roy Choudhury, Chairman and Managing Director, NTPC, in Bangalore on Thursday. DH PhotoUnder the present agreement, the State will receive 35 per cent of the power and other southern States will get the rest. Energy Secretary Shamim Banu said Karnataka had appealed to the Ministry of Power to allocate 80 per cent of the power to the State.

The Power Purchase Agreement (PPA) is valid for 25 years and the tariff will be determined by Central Electricity Regulatory Board (CERC). The state hoped to commission the first phase of the units by 2013. The Karnataka Industrial Areas Development Board (KIADB) has acquired 1,900 acres out of the 3,500 acres required for the plant.

Final report

The final report of the Environmental Impact Assessment is expected to be ready this month. Officers of NTPC expressed their satisfaction over 5.2 tmc of water a year from Almatti Dam being guaranteed for the plant.

Chief Minister B S Yeddyurappa announced that the state would be procuring 1,000 MW of power as a short term measure from September 2010 to May 2011 to tide over the shortage of power. The agreement was signed at Vidhana Soudha by representatives of the Escoms and the NTPC in the presence of Chief Minister B S Yeddyurappa and Energy Minister Shobha Karandlaje.

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