Bihar government is taking steps to bridge the power shortage in the state by resorting to open market purchase of power, signing power purchase agreement (PPA) with producers etc.
The Bihar State Power (Holding) Company Limited (BSPHCL) signed a power purchase agreement (PPA) with Essar Energy to buy 750 mw and Kamlanga Energy to buy 260 mw power, reports indicate.
The PPA will enable the state get 450 mw from Essar Energy from July 2014 and 300 mw from October 2015, and 260 mw from Kamlanga Energy from November 2015.
It may be recalled that the state Chief Minister Nitish Kumar has laid emphasis on power infrastructure after road construction.
While Bihar’s daily power requirement is between 3,000 to 3,200 mw, the state produces merely 100 mw, reports indicate.
The central government supplies 1,985 mw to the state. Bihar is facing a deficit of over 1,200 mw, they said.
The state government is seeking its share in an upcoming thermal power plant of the National Thermal Power Corporation in Barh in Patna district. Besides, the government has cleared other power projects in the private sector in the state.
In order to meet the shortfall in its power requirements, the state government has begun the process to purchase 1,000 mw from the open market. At present, the state is purchasing 300 mw.
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