Vijendra Prasad Yadav at a meeting on Friday. Picture by Nagendra Kumar Singh

Patna, May 27: The state government is treading cautiously in private investments in the power sector after receiving Adani group’s investment proposal of Rs 7,000 crore in the power sector and coal mining.

Not a single private project in the power sector has been translated into reality in the state.

State Industrial Promotion Board (SIPB), set up by the Nitish-led NDA government after assuming power in November 2005 to promote private investments in the state, has already cleared about two dozen thermal power projects entailing an investment of more than Rs 1.4 lakh crore to generate around 25,000MW of electricity in the state.

However, most of the projects could not even start as the Centre and the state governments passed the buck on each other over the allocation of coal linkages, water availability from the Ganga and land acquisition, all key requirements for setting up of the plants. The state government has been reluctant to help the private entrepreneurs, the principal department of the energy department, Ajay Nayak said.

Adani Power Limited, a sister concern of Rs 1.25 lakh crore Adani group which is listed at the bourses, has shown interest in setting up two thermal plants of 660MW besides developing coal mines entailing an investment of Rs 7,000 crore. These projects would generate over 5,000 jobs for the people of the state.

The company has also given a Power Point presentation on the activities, ventures and initiatives of the group before chief minister Nitish Kumar along with energy minister Vijendra Prasad Yadav. Nitish expressed happiness that more and more private investors are showing interest in the state.

The energy minister, however, reacted cautiously. “It is a very good thing that they (the Adani group) have shown interest in investing in Bihar. However, it will be premature to say anything on the issue. Now, they will approach the SIPB from where the project will be cleared.”

Asked whether or not land would be a problem for the Adani group like it happened with previous investors, Yadav said: “They are capable of purchasing land and the government is there to co-operate with them in setting up the plant.”

Nayak told The Telegraph: “They (Adani group) will first choose the site to set up the plants. The firm will develop coalmines and arrange for their coal linkage.”

Asked about the land acquisition, Nayak said: “The state government will have no role in the process of land acquisition. It is merely a proposal at this stage, so nothing concrete could be said now.”

The state government had already made its intentions clear that it would not acquire land by force soon after taking the reins of the state in 2005. Therefore, most of the private companies could either acquire only a few hundred acres or have only identified the land for the projects.

JAS Infrastructure Capital Limited has made some progress as it has identified 1,850 acres for acquisition. The company has signed an MoU with the Bihar government for the setting up four units of 660MW at Banka.