Power companies make a bee-line to Orissa
27 Sep 2006
Ten power companies have signed memorandums of understanding (MoU) with the Orissa government to set up power plants in the state. Together, the plants will produce around 11,000 mega watts of power, reports CNBC-TV18. Orissa is looking to garner Rs45,000 crore in investments from the deals.
The 10 companies include heavyweights like Tata Power, Sterlite Energy, Visa Power, Essar Power, Lanco Group, CESC and Monnet Ispat, among others. But Reliance Energy, which was scheduled to sign the MoU yesterday, did not turn up.
Reports suggest the absence was because of its dispute over Rs1,200 crore in dues, which the Orissa government claims from the company's energy distribution wing. Reliance's deal would have allowed it to set up a Rs16,000-crore, 4000 mega watt power plant in Orissa's Jharsuguda district. The government hopes the dispute will be settled soon.
"There are some problems with Reliance which will be looked into by a special joint committee and we expect to soon sign MoU with them," said Surya Narayan Patra, energy minister, Orissa.
