New Delhi, May 3: National Hydroelectric Power Corporation (NHPC) is set to finalise the financial and technical details relating to the 900 megawatt Purulia Pumped Storage Project with the West Bengal government.
Officials of the West Bengal government and NHPC have agreed on most of the contentious issues and the feasibility study for the project is likely to be initiated by the end of next month.
The power ministry, NHPC and the Bengal government officials will meet on June 25 to thrash out the modalities to conduct the financial study on the project.
?We are positive that all the issues will be resolved and the meeting scheduled for next month will be successful,? A. K Gangopadhyay, chairman and managing director of NHPC, told The Telegraph. ?I have no doubt that the project will start soon. Most of the issues have already been resolved.?
Commenting on the future of hydropower, he said, ?Hydropower is the future. We are committed to bringing down the time period for a project and reducing the per unit cost. Currently, our average per unit cost of power is Rs 1.50 per unit.?
Last year, the West Bengal government had indicated to the power ministry that if the hydro power major NHPC does not immediately resolve the issues to start the Purulia Pumped Storage Project, it may offer the project to National Thermal Power Corporation.
Issues like high generation cost of the project and supply mechanism were hindering the progress of the financial agreement between NHPC and the Bengal government.
The joint venture agreement for the project was signed between the West Bengal government and NHPC in 2000.
Located 445 kilometres from Calcutta at Ayodhya Hills in Purulia district, the project is the largest pumped storage scheme envisaged for execution in the country. Estimated to cost Rs 3129.45 crore at November 2003 prices, the project will have an annual generation of 16,666.97 million units on completion.
Both the partners had not been able to finalise the arrangement for power required for re-pumping water back to the Purulia Pumped Storage. The power for re-pumping was to be supplied by the Bengal government.
