New Delhi: The Centre has planned to set up five mega power projects that is likely to wipe out almost a third of the total power shortage in the country. Each of these projects will have a capacity of 4000 megawatts (MW).
Despite initial apprehensions about their size, 35 companies including Reliance, GMR, GVK, Essar and NTPC have submitted their bids for these projects. The company that asks for the lowest per unit tariff will win.
The Power Ministry estimates that electricity from these projects will be generated at a cost of Rs 1.50 to 1.80 per unit.
"The whole concept of giving this mega power project is to give cheaper and clean power," says Union Minister for Power, Sushil Kumar Shinde.
The proposed power plants are to be set up in five states which include Madhya Pradesh, Chhattisgarh, Gujarat, Karnataka and Maharashtra.
Buoyed by the response, the government is adding two more projects in Uttar Pradesh and Chattisgarh. Lower capacity projects of around 1000-1500 MW are also being planned.
"There would be projects which would be in the range of 1000 to 1500 megawatts and I am sure that you will see developers falling into that slot, depending on what they wish to pursue and on what type of consortium they are able to make," says Union Power Secretary, R V Shahi.
Although setting up mega projects with the capacity 4000 MW or more provides economies of scale, the Centre is also looking at giving the rural projects a boost.
The Rural Electrification Corporation plans to issue an Initial Public Offering by the year's end. It claims that nearly 40,000 rural homes will be electrified this year and 1,10,000 villages by 2010.
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