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The Orissa government may offload 74 per cent stake in Orissa Thermal Power Corporation Ltd (OTPCL) in favour of a strategic partner for its 2,400 MW (3x800) MW coal-fired power plant proposed at Kamakhyanagar in Dhenkanal district. The government has decided to adopt the UMPP (Ultra Mega Power Plant) model and induct a strategic partner through competitive tariff bidding process for 25 years. While the strategic partner is set to take over the management control of the power project, OTPCL will retain 26 per cent equity. Said a top official of state energy department, “Only preliminary discussions have been held regarding offloading of stake in OTPCL. The proposal will go for government approval.”

The Rs 10,000 crore project needs 1,969.78 acres of land which includes 987.77 acres of government land and 83.94 acres forest land and 982.01 acres in private possession. Notification for land acquisition under Section 4 (1) of Land Acquisition Act will be issued shortly. The total land required for the project will be procured by OTPCL.

OTPCL has already got the water allocation from the department of water resources. With regard to coal feed for the proposed power plant, Orissa Hydro Power Corporation (OHPC) and Orissa Mining Corporation (OMC) have pledged to provide 200 million tonnes and 300 million tonnes respectively from the Mandakini-B coal block allotted to them. Entire power generated from the proposed power plant will be procured by Grid Corporation of Orissa Ltd (Gridco) as per the tariff determined through the bidding process. OTPCL will engage a transaction consultant to assist in working out the state UMPP model based on the experiences of Power Finance Corporation (PFC) and other states if any in this regard.

Once the process of selection of strategic partner for the 2,400 MW power plant is completed and the project implementation takes off, OTPCL would revive the Rengali site for setting up of another coal-based power plant. The project which was originally supposed to be taken up a Rengali had to be relocated to Kamakhyanagar after the Union ministry of environment and forests (MoEF) in August last year had declared the Kaniha coal block falling under the project site as a 'No-Go area'. The state government would also approach the Ministry of Coal for allocation of additional coal block for OPTCL to meet the full requirement of coal for the 2,400 MW plant.

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