THE MINISTER OF STATE IN THE MINISTRY OF POWER
( SHRIMATI JAYAWANTI MEHTA )
(a) to (c) : Koel Karo HE Project (710 MW) in Bihar was
originally approved in June, 1981 at an estimated cost of
Rs.444.67 crores at March, 1980 price level. However, no major
work could be started due to resistance from the local people to
the acquisition of land. In August, 1984 a writ petition was
filed in the Supreme Court of India demanding inter alia the
scheme for rehabilitation of the displaced persons. On
submission of the R&R package, the stay was vacated on 6.2.89,
and the Court directed that the rehabilitation plan must be
implemented and the compensation must be paid. Government of
India, approved the revised cost estimate for the project
amounting of Rs.1338.81 crores in November, 1991.
In a meeting of the Central Empowered Committee
(CEC) constituted by the Government for reviewing Central Sector
projects making slow progress, held on 26.2.97, it was decided to
freeze further expenditure on the project thereby putting a stop
to work on the project.
Based on the request of the Hon`ble Members of
Parliament from Bihar, Ministry of Power took steps to revive the
project. Koel Karo HE Project in Bihar is one of the projects
identified as a Mega Power project under the Mega Power Projects
Policy approved by the Government on 8.10.1998. The mega
projects are entitled for concessions which would make the tariff
from the project more attractive.
Thereafter, Ministry of Power has requested the
Government of Bihar for conducting fresh survey of Project
Affected Persons (PAPs) in order to enable NHPC to formulate the
Environmental Management Plan (EMP) in accordance with the
guidelines of the Supreme Court. It is necessary to have firm
commitment from buyers for the power from Central Sector Power
Projects before execution. Orissa and West Bengal have declined
to purchase power from the project since the tentative tariff
amount to Rs.7.13 per unit is considered too expensive by them.
Bihar has committed to purchase power from the project to the
extent it will require to draw power at the prevalent tariff
rate. NHPC have been asked to seek the consent of the States
outside the region for purchase of power from Koel Karo H.E.
Project.