Saturday, December 13, 2008

India to import 5,000 Mw power from Bhutan

Press Trust of India / New Delhi December 12, 2008

The country will import 5,000 Mw of power from neighbouring nation Bhutan by 2020, Minister of State for Power Jairam Ramesh told Lok Sabha today.

"As per the agreement with Royal Government of Bhutan, our government has agreed to import 5,000 Mw electricity by 2020," Ramesh said in a written reply.

Further, Ramesh said that several initiatives have been taken by the government to attract foreign direct investment (FDI) in the power sector.

The government has approved 100 per cent FDI in power projects related to generation, transmission and distribution other than nuclear power plants.

Ramesh said that no targets have been set for FDI in the power sector as the inflow of capital largely depends upon the prevailing investment climate and the foreign investor's confidence.

Ministry of Power has taken up initiative for facilitating the development of Ultra Mega Power Projects (UMPPs) of about 4,000 Mw each under the tariff based competitive bidding route using super critical technology. These UMPPs would be set up at either pithead or coastal locations, he said.

The criteria adopted for selecting sites for these projects at pithead is proximity to coal blocks, availability of land and water, coal logistics, accessibility of site by road and rail.

He said that the amount of loan sanctioned by Rural Electrification Corporation for setting up power projects up to November 30, 2008, is Rs 19,357 crore.