Patna: The first unit of Nabinagar Power Generating Company Private Limited (NPGCPL), which will generate 660 MW, will be commissioned before March next year.

The final round of testing of equipment at the plant is going on, after which the trial run of the plant will be done.

"Going by the pace of work, we are confident of starting power production before the end of the current fiscal year," an NPGCL said on Thursday.

The NPGCPL was incorporated in 2008. The Bihar government and the NTPC have 50 per cent stake each in it.

The power plant had hit several problems due to protests by local residents over land acquisition. Land acquisition finally started in 2010, the work order for construction of the plant was awarded in 2013 and even the construction work was hit by protests by local landowners.

The commissioning of the plant will reduce Bihar's dependence on the open market for meeting its power demands.

The state has recorded a peak power demand of 4,500 MW this year.

Bihar gets only around 2,100 to 2,200 MW of power on an average from the Centre against the state's quota of 2,942 MW.

According to the agreement between Bihar and the NTPC, the state would get 69.34 per cent of the power generated at the plant. So, after commissioning of the first plant (660 MW) Bihar would get around 458 MW of additional power.

Officials at the Bihar State Power Holding Company Limited (BSPHCL), however, seemed sceptical about the gains.

"Of course the commissioning of the power plant would reduce our dependence on the open market but these days more than anything else the rate matters the most. If power in the open market is available for cheaper, then it becomes a load on the power distribution companies," a BSPHCL official said.

The NPGCPL official said the central electricity regulatory commission would decide on the rate.

Power sector sources said capital expenditure in commissioning of power plants come into play while deciding the rates and for newer plants it is on the higher side owing to enhanced cost of land acquisition and equipment.

The NPGCPL official said over Rs 10,000 crore had been spent in setting up the plant at Nabinagar and the amount was likely to go up by the time all three units become functional.

According to the plan, three units of 660 MW each are to be commissioned at the plant. There are plans to add three more units of 660 MW each but a final decision on this has yet not been taken.

The NPGCPL official said that the work on the second plant of the unit too was going on in full swing and it was likely to be commissioned some time in 2018-19.