NEEPCO to expand thermal power generation capacity

Minister of state for power and commerce Jairam Ramesh has said the Shillong-based North Eastern Electric Power Corporation Ltd (NEEPCO) would expand capacity. A central government public sector enterprise set up in 1976, NEEPCO has an installed capacity of around 1130 MW, which meets around 60 per cent of the energy needs of the eight north eastern states.

As aprt of its expansion, NEEPCO has taken up six projects in hand that are expected to add an additional 1380 MW in the 11th Five-year Plan period by 2012. In addition, another six projects with a combined capacity of 3000 MW are under examination.

Ramesh said that NEEPCO would establish and expand thermal power plants in the north eastern states, which are suffering on account of their dependence on hydel projects. He said India needed more hydel projects while the northeastern region needed more gas-based and coal-based capacity.

NEEPCO has proposed a joint venture with the Assam government to set up a 480 MW coal-based power project based on the state's Margherita coal reserves and another proposal to the Meghalaya government to set up a 500 MW coal-based project based on the state's Garo Hills coal reserves.

While appreciating the pioneering role played by NEEPCO in the most difficult of geological and political circumstances in the region, Ramesh exhorted power compny to explore joint ventures with private companies, particularly with those which have taken over hydel projects in Arunachal Pradesh for which NEEPCO had originally prepared the detailed project reports. These projects include the 160 MW Talong hydel project which has been taken over by the GMR Group, the 125 MW Dibbin hydel project and the 600 MW Kameng Dam hydel project both of which have been taken over by KSK Ventures.

Ramesh also said that NEEPCO should work closely with institutions like IIT, Guwahati, the North Eastern Hill University (NEHU), Shillong and IIT, Roorkee in different areas like geology, IT and environment. He also suggested the formation of an external environment advisory group by NEEPCO so as to build greater confidence in civil society about its commitment to ecological issues and concerns.

Ramesh also expresed the view that NEEPCO should plan an IPO some time in the first half of 2009 to raise resources for further expansion projects.