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MoU signed for performance improvement of Bihar’s power industry

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World Coal,

On 15 May, a Memorandum of Understanding (MoU) was agreed amongst the Government of Bihar (GoB), Bihar State Power Holding Co. Ltd. (BSPHCL), Bihar State Power Generation Co. Ltd (BSPGCL), North Bihar Power Distribution Company Ltd. (NBPDCL), South Bihar Power Distribution Company Ltd. (SBPDCL), Bihar State Power Transmission Company Limited (BSPTCL) and NTPC Limited at Patna for performance improvement of power sector in the State of Bihar.

MoU signed for performance improvement of Bihar’s power industry

The MoU was entered in the august presence of Shri Nitish Kumar, Chief Minister of Bihar, Shri R. K. Singh, Minister of State (Independent Charge) for Power and New & Renewable Energy, Govt. of India and Shri Bijendra Prasad Yadav, Energy Minister, GoB, Shri Pratyaya Amrit, Principal Secretary, Department of Energy, GoB, Shri Gurdeep Singh, CMD, NTPC Limited, Shri Anand Kumar Gupta, Director (Commercial), NTPC, Shri R. Lakshmanan, Managing Director, BSPGCL and other dignitaries.

The MoU envisages transfer of the Barauni thermal power plant (720 MW) and transfer of BSPGCL’s equity in Kanti Bijlee Utpadan Nigam Limited (KBUN) & Nabinagar Power Generating Company (Pvt.) Limited (NPGC) to NTPC.

NTPC, a Maharatna Company under Ministry of Power, Govt. of India is the largest power generating company in India with a total installed capacity of 53651 MW (including JVs) from coal, gas, hydro, solar and wind power projects. NTPC is on an accelerated growth trajectory to meet this long-term target, and currently has a 21 071 MW capacity under construction. The company has two operational coal mines. NTPC in the past has demonstrated strong capability in turning around under-performing state-owned power plants.

Barauni thermal power plant is located at Begusarai district in Bihar. The plant is comprised of Stage-I (two 110 MW) which is under advance stages of R&M, and Stage-II (two 250 MW) which is under construction.

NTPC with its expertise in construction of power projects and contract management capabilities is expected to complete the balance works and achieve sustained commercial operation of units in a time bound manner.

Nabinagar Power Generating Company (Pvt) Limited is a 50:50 Joint Venture Company of NTPC Limited and BSPGCL. The company is developing a 1980 MW (three 660 MW) Nabinagar Super thermal power project in district Aurangabad, Bihar. The project is currently under construction.

Kanti Bijli Utpadan Nigam Limited (KBUNL) is a subsidiary company of NTPC Limited in Joint Venture with BSPGCL. Currently NTPC and BSPGCL owns 72.64% and 27.36% equity holding in KBUNL respectively. KBUNL owns and operates Muzaffarpur thermal power plant (two 110 MW plus two 195 MW) situated at Kanti, District Muzaffarpur in the State of Bihar. The plant is currently under operation.

All the three power generation facilities are envisaged to be transferred to NTPC from the effective date to be notified by GoB through a statutory transfer scheme. The transfer of these power plants to NTPC will result in their optimal and efficient utilisation, bring the tariff down and benefit the people of Bihar at large.

Power from all the three power plants shall be available to the State of Bihar as before, after the approval by the Ministry of Power, Govt. of India.

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