Bhattacharjee: One step ahead

Purulia, July 2: Chief minister Buddhadeb Bhattacharjee today set the ball rolling for the Rs 3,189-crore Purulia Pumped Storage Project (PPSP), the largest such pure pumped storage hydro power project in the country. The 900-mega-watt project, scheduled to be completed by March 2007, is expected to energise power-starved Bengal that needs an additional 500 mw in the current financial year.

The chief minister today flagged off the process of filling up the reservoirs ? the most important part of the project. Bhattacharjee said the state government had put in Rs 570 crore in the project.

The Purulia power project is being jointly funded by the West Bengal State Electricity Board (WBSEB) and Japan Bank for International Cooperation (JBIC). While, the Japanese bank is providing 82 per cent of the project cost, the rest is being funded by the state power board.

JBIC has already given a loan of Rs 1,200 crore in two tranches. It will bring in another Rs 1,400 crore within the next two to three months. The Japanese loan has a moratorium of 10 years and the repayment is spread over a period of 20 years.

The first tranche of the loan was received by the Bengal government in February 1995. The government will have to start servicing the loan as the 10-year period is already over.

JBIC had given the loan to the Indian government at differential rates ? 2.6 per cent for the first tranche and 1.3 per cent for the second tranche. The Bengal government will, however, have to pay back at the rate of 10 per cent.

The project is expected to get a mega status which will bring down the cost to Rs 2,700 crore. The mega project status will give the Bengal government a customs duty waiver of nearly Rs 350 crore.

The tariff for the power generated at PPSP is expected to be in the region of Rs 3.50 per unit. The tariff proposal will be placed before West Bengal Electricity Regulatory commission next year.

WBPDCL move

West Bengal Power Development Corporation Limited (WBPDCL) may consider picking up a stake in the Purulia project. The corporation has already held preliminary talks with the WBSEB in this regard.

WBPDCL?s entry into the project will end the possibility of National Hydroelectric Power Corporation?s participation in the country's largest pumped storage project. Explaining the rationale behind WBPDCL interest, senior PPSP officials said, ?We will need thermal power to run the generators, which will be required to operate motors and turbines. As WBPDCL will provide us with power it is a logical conclusion that they will take up stake in the project.?