Next part of the power scenario of the WBSEB comprises - Infraline

PURULIA PUMPED STORAGE PROJECT
“Declared MEGA POWER PROJECT by MOP, Govt. of India on 6 December 2005”
The State of West Bengal and the Eastern Region is having predominantly Thermal Power Generation system
with an insignificant capacity of Hydro Power. In the region the Peak demand is suppressed due to shortage
of peaking power whereas there is surplus energy during night. In the present system the Hydro Thermal mix
in West Bengal is 04:96 and that of Eastern Region is around 14:86 against a desired level of 40:60. The
thermal predominant Power generating region has to cater peak, off peak, fluctuating as well as base load
with a serious effect on frequency. Also running of thermal power station at lower load for considerable period
reduces the efficiency drastically and causes severe and quicker wear & tear of the plant. Also due to high
variable operating cost, slow in load variation response, thermal facilities are not felt a good mean to supply
the peak demand. In order to achieve a better generation mix and more efficient electricity supply in the
region, the implementation of Purulia Pumped Storage Project of capacity 900 MW (4 x 225 MW) is taken up
in Ayodhya hills in the Purulia district of West Bengal under P.S. Bagmundi.
The field investigation and preparation of Detailed Project Report (DPR) was completed by the West Bengal
State Electricity Board with the loan assistance of Japan Bank for International Cooperation (JBIC), erstwhile
Overseas Economic Cooperation Fund (OECF), Japan against Loan Agreement No. ID-P 44 dated 10 February
1988 and the same was concluded in February 1993. The DPR of the project was submitted to CEA by
WBSEB in May 1992. The Techno-Economic clearance was accorded by CEA in July 1992 subject to the
condition of Environment and Forest (MOEF) clearance. The Ministry of Environment & Forests (MOEF)
cleared the Project on 13 October 1993. And finally, the project was cleared by the Planning Commission on
9 February 1994. M/s. Water & Power Consultancy Services (WAPCOS) in association with Central Electricity
Authority (CEA) and Central Water Commission (CWC) were associated for the project as local Consultants
and M/s. Electric Power Development Company (EPDC), Japan as Foreign Consultant.
232.42 ha of forest land (including submergence area of 185.80 ha for two Reservoirs and 46.62 ha for part of
road, ancillary facilities etc.) was diverted to the Project in first phase in December 1997. Further, formal
clearance for diversion of 131.67 ha of additional forest land (required for Quarry/Stockpile Yard & Processing
Area/Construction facility/Transmission Lines etc.) was accorded by the MOEF/Govt. of India in February
2002. Thereafter, formal clearance for another 9.07 ha forest land for rock quarry for Upper Dam of the Project
was accorded by the Ministry on April 2003. Thus aggregated total forest land diverted to the Project became
382.27 ha. In addition to above, possission of 14.67 ha of private land and 1.655 ha of vested land in Mouza-
Barriya, PS. Bagmundi, required for Clay Core Quarry of Upper Dam has already been received. It would be
worthwhile to mention here that no family has lost any land or any house and no historical or cultural moments
were affected due to diversion of the forest land. Also, WBSEB agreed that an area of 113.945 ha (9.915 ha in
Phase-I and 104.03 ha in Phase-II) of prime forest land to be returned to the Forest Department on demand
after completion of the Project and after reclamation of the said land. And, as such, exchange of 2.25 acre
forest land, near Lower Dam, is going on.
The implementation of the Project is now under progress with loan assistance of Japan Bank for International
Cooperation (JBIC) erstwhile Overseas Economic Cooperation Fund (OECF). The original estimated cost of
the project was 1,07,150 Million Yen (Rs. 3188.90 crore) covering the element of escalation, contingencies
and IDC till commissioning of the Project.
Out of the above, the JBIC had sanctioned 20,520 Million Japanese Yen (Rs. 610.7 crore) in first tranche. The
loan Agreement (No. ID-P 98) was signed on 28 February 1995 with date of effectuation as 12 April 1995 and
final date of disbursement as 12 December 2004. And within the stipulated date, PPSP-WBSEB finally utilized
20,388 MY (99.36%) of it.
The Second Tranche Loan Agreement (No. ID-P152) dated 31 March 2004 was effectuated on and from 18
June 2004 with sanctioned amount of 23,578 MY (Rs. 910.3 crore) and final date of disbursement as 18 June
2009. And till 20 March 2007, PPSP-WBSEB has already utilized 23,052,059 MY (98%) of it.
There was a need for the Third Tranche Loan from JBIC at the right time slot. There stands a formal Project
proposal by the Govt. of India seeking financial assistance from Govt. of Japan. And finally Draft Minutes of
Discussion (MOD) amongst JBIC, Govt. of India, Govt. of West Bengal and WBSEB has been signed on 29
November 2005. The latest anticipated Project cost at the time of appraisal of PPSP III became 73,521 Million
Annual Report 2006-2007
27