Ranchi, June 14: A new joint venture company, with National Thermal Power Corporation (NTPC) and the state government as partners, will be in place by the end of the next month - the first step towards setting up a 4,000MW Greenfield project and reviving the existing thermal power facility at Patratu in Ramgarh district.
State chief secretary Rajib Gauba today maintained that work was on to finalise terms and conditions of the proposed joint venture, clearing the decks for the NTPC to infuse a fresh lease of life into the ailing Patratu Thermal Power Station (PTPS).
"A team from NTPC is already on the job. Once the various clauses are agreed upon by both parties, a formal joint venture agreement will be signed by the state and NTPC. Thereafter, steps will be taken to get the new company incorporated," Gauba told The Telegraph.
The state and NTPC signed an MoU on May 3. According to the understanding, the proposed 4,000MW project will comprise five units, each with an installed capacity of 800MW. The phase-I with three units will commence generation in 2019 whilst the remaining two will become functional in the phase-II by 2022.
Currently, the chief secretary added, work was on to finalise a transfer scheme to facilitate handover of all existing assets and liabilities of PTPS to the new joint venture company. Also, a scheme is being prepared to transfer the existing employees to the JV firm.
"We have already agreed in principle that there will be no retrenchment of employees currently posted at PTPS. The joint venture agreement, along with the transfer schemes, will be vetted by a high-powered committee," Gauba said.
The high-powered committee is being headed by the chief secretary and comprises the secretaries of the state finance and energy departments.
When asked to comment on allegations of a sell-out, Gauba said there was no reason for any alarm. "There will be no takeover of PTPS by NTPC," he added.
Under the MoU signed last month, the state will hold 26 per cent equity while NTPC will have the majority stake of 74 per cent in the JV company. The PSU major will arrange the finance to set up the project while the state will provide land and water linkages to participate in a cash-less equity.
NTPC has been part of a number of successful joint ventures in Uttar Pradesh, Bihar, Odisha, Delhi, Tamil Nadu, Haryana and other states.
"The NTPC joint venture will give the much-needed fillip not only to the state's power sector but will also help lay the foundation for a strong industrial base in Jharkhand," Gauba stressed.
