Delhi government wants power companies to buy land for plants

Delhi government wants power companies to buy land for plants
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First Published: Wed, May 23 2007. 05 07 PM IST
Updated: Wed, May 23 2007. 05 07 PM IST
The Delhi government has said that the private distribution companies engaged in supplying power in the Capital can set up power plants if they are able to get land. Confirming that the government had got proposals from both Reliance Energy Ltd and Tata Power Ltd to set up power plants , Delhi power and transport minister Haroon Yusuf said “if they can get the land we have no problem.”
Livemint had first reported that Reliance Energy-owned BSES, which distributes power in East, West and South Delhi through two companies BSES Rajdhani Power Limited and BSES Yamuna Power Limited, had sent a proposal to the Delhi government to set up a 1400 MW gas-based plant. The letter said that Reliance Engergy was interested in setting up the plant, if the government could acquire land for them. REL had also identified seven areas in Delhi where this plant could come up.
A few days later Tata Power Ltd, which distributes electricity in north Delhi through North Delhi Power Ltd, informed the Delhi government that it is interested in setting up a 1000MW power plant and asked for land in Khanjawala in the Capital.
The Delhi government, though, does not seem interested in acquiring land for the projects. However, buying land at market rates will make the projects costlier, and they would prefer that the government gives them land at concessional rates.
However, both BSES and NDPL say that they are still waiting for any communication from the Delhi government on their proposed projects. A BSES official, on condition of anonymity, said that buying land at market rate may not be feasible.
On the other hand, a Tata Power official pointed out that apart from buying the land, a host of clearances are required from the government, and they are still eager to hear from the government.
Currently, three power projects in Delhi are under construction with a collective capacity of 2000MW that would be completed before 2010. However, by then the peak demand is likely to go up to 7000MW from the present demand of nearly 3,500MW.
The power minister also said that since the present power purchanse agreement is only up to 2010. So after that the distribution companies are free to set up plants and draw power from them.
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First Published: Wed, May 23 2007. 05 07 PM IST