Hydropower majors SJVNL (formerly Satluj Jal Vidyut
Nigam Ltd) and Central utility NHPC have shown
interest in developing large thermal power projects in
Bihar, a senior official of Bihar State Electricity Board told
Electrical Monitor by phone from capital city Patna. While this
represents a diversification for the hydropower giants, for
Bihar it could mean resuscitation of large coal-fired power
plants that have been unable to attract private sector
developers for years on end.
The BSEB official, who requested anonymity, explained that
Bihar had sought to develop three projects-Buxar, Lakhisarai,
Pirpainti (each of 2x660-mw)-using Case-2 of the tariff-based
competitive guidelines. On its part, the state government
would help with land
acquisition, environmental
clearances, etc. The
developer would be selected
using tariff-based
competitive bidding
method. The official
explained that coal linkage
was to be the responsibility
of the developer.
The projects did not meet
with encouraging response.
Only one of the three
projects attracted bids; they
were from Vedanta Group
and Lanco Group. The bid
by Vedanta was found to be
deficient. Subsequently,
Bihar Electricity Regulatory
Commission did not allow
processing of Lanco's bid as the competition was reduced to
"single bidder" status.
Given that the Case-II exercise has not seen progress the
involvement of SJVNL and NHPC could be a welcome
development. SJVNL has shown interest in the Buxar project
while NHPC would be interested in the Lakhisarai project.
SJVNL-a joint venture between the Central government and
Himachal Pradesh government-owns and manages the 1,500-
mw Nathpa-Jhakhri project that is India's largest operational
hydropower project till date. NHPC, a Central PSU, is India's
largest hydropower company. The BSEB official said that the
two projects will be developed on "cost-plus" basis and not on
the tariff-based mode.
The BSEB official also mentioned that efforts are underway
to renovate BSEB's only two power generation plants-
Muzaffarpur and Barauni. Besides the R&M works,
Muzaffarpur will be expanded by adding two units of 195-mw
each, while Barauni will see capacity expanded by 2x250-mw.
Both these power plants are antiquated and are currently
operating at de-rated capacities. The expansion projects
should be ready by the end of the ongoing XII Plan period, the
official noted.
Meanwhile, Bihar has made some progress in tying up longterm
power supply with public and private power producers.
The BSEB official explained that 750 mw has been contracted
with Essar Power through two agreements, while GMR Group
will supply 260 mw on long-term basis. These 25-year
agreements will come into effect from 2014. Essar will supply
power from its Tori project in neighbouring Jharkhand while
GMR will feed power from its Kamalanga project in Orissa.
BSEB has also entered into a long-term power purchase
agreement with Central utility NTPC.
Biggest hope: Amidst all its attempts at augmenting power
availability, the Nabinagar power project is seen as Bihar's
biggest hope. Being developed through an equal joint venture
between NTPC and BSEB,
the Nabinagar (Stage I)
involves setting up of three
supercritical units of 660-
mw each. The foundation
stone for this Rs.13,000-
crore project was laid in
January this year. The
project is shaping up on a
3,000-acre expanse at
Nabinagar in Aurangabad
district. Land acquisition
has taken place and NTPC
is close to finalizing
equipment suppliers. The
BSEB spokesperson said
that in the second phase of
the project, three more
units of 660-mw will be
added, as against two
envisaged earlier.
The bifurcation of Jharkhand in November 2000 left divided
Bihar with very little power generation capacity. Even much of
its coal exists in districts that are now under Jharkhand. With
very little power generation from its own plants, BSEB relies
heavily on allocation by Central power generation plants. It
spends huge amounts on power procurement and yet cannot
fulfill the demands of the state. Revenue collection from
power distribution is pathetic, which has atrophied an already
fragile power supply chain. Notably, Bihar had to recently
contend with failure in privatizing power distribution in the
Patna circle, bringing to naught an effort launched in 2009.
The per-capita power availability in Bihar is amongst the
lowest in the country. In FY12, Bihar had power availability of
11,250 million kwh that represented a shortfall of 21.3 per
cent. This made a poor comparison with the national metric of
8.5 per cent. On the other hand, Jharkhand's power deficit was
only 4 per cent.
Bihar has definitely made a beginning but it has a long way
to go before it makes historical power shortages history.