thermal power development - Infraline

Central electricity authority Annual Report 2009-10
among NHPC (69%), SJVNL (26%) and Govt.
of Manipur (5%). Formation of Joint Venture is
in progress.
The project was techno-economically
cleared by CEA vide its letter dated 2.7.2003
at an estimated cost of Rs.5163.86 crores at
December 2002 price level including IDC of
Rs.757.26 crores. Part estimate of Rs.9.52 crores
for undertaking some works on priority
under Stage-II activities of the project was
recommended by CEA on 2.04.2004.
Revised Cost Estimates of the project
were cleared by CEA for an amount of
Rs.6701.97 crores including IDC of Rs.816.40
crores at December 2004 price level on 6.05.2005.
This estimate also included additional provision
of Rs.1100.78 crores as Net Present Value (NPV)
@ Rs.5.8 lakh per Hectare of submerged forest
land converted for non-forestry use.
First PIB meeting was held on 25.10.2005.
As per the minutes of the meeting, MoP had
to submit a Supplementary Note to be studied
and considered in the Core Group of the PIB
for finalizing its recommendations. Second
PIB meeting was held on 31.01.2006 which
recommended the project for placement before
CCEA for consideration, subject to the following
observations:
i) Costs relating to flood moderation, diversion
of National Highways and external security
may be borne by the concerned administrative
departments. The costs should be updated
and availability of funds confirmed in the
Note for CCEA.
ii) Ministry of Power may take up the issue of
high NPV cost with the MoE&F and reflect
the outcome in the Note for CCEA.
iii) Ministry of Power may persuade the State
Governments of Mizoram and Manipur to
reduce their share of free power from the
project.
iv) Project costs may be updated to December
2005 price level.
v) Ministry of Power would obtain Environment
and Forest Clearance before submitting the
proposal for consideration of CCEA.
vi) Risks relating to law and order and R&R to
be explained clearly in the CCEA Note, along
with strategies for risk mitigation. Views of
Manipur and Mizoram Governments in this
regard to be brought on record.
vii) PPAs may be firmed up before the project is
submitted for consideration of CCEA.
viii) Adequacy of technical investigations,
including critical design parameters, may be
confirmed by the project authority to avoid
any future surprises.
As per PIB observations, following actions have
been taken:
i) The updated Revised Cost Estimates
submitted by NEEPCO to CEA at November,
2005 price level were vetted by CEA on
22.03.2006 as Rs.5026.84 crores (as hard
cost excluding IDC, flood moderation,
diversion of National Highway and external
security). Subsequently, CEA vetted the IDC
component as Rs.828.99 crores (November,
2005 price level) in August, 2006. Thus,
the total cost at November, 2005 price level
works out to Rs.5855.83 crores. This cost
did not include the cost of flood moderation,
diversion of National Highway and external
security.
ii) In a meeting taken by Secretary (Power)
on 26.2.2008 in MoP, NEEPCO indicated
that MoWR on 15.12.2005 had conveyed
approval for meeting cost of flood
component. Ministry of Shipping, Road
Transport and Highways conveyed their
‘In Principle Approval’ to meet cost of
National Hightway diversion on 14.9.2006.
MHA conveyed ‘In Principle Approval’ on
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"CEA-Helping the Transformation of Indian Power Sector"