Engineers oppose JV for Amarkantak power project in MP, Energy News, ET EnergyWorld

NEW DELHI: All India Power Engineers Federation (AIPEF), an umbrella body of engineers working with state utilities, has opposed the Madhya Pradesh Power Generating Company Ltd’s (MPPGCL) move to build replacement units of Amarkantak power project with South Eastern Coalfields Ltd, citing poor track record of joint ventures in the past.

In a letter to chief minister Shivraj Singh Chauhan, federation chairman Shailendra Dubey said the project to build two 660 megawatt coal-fired units should be built by the state generation company as recommended by a state government committee.

Dubey pointed out that the MoU does not mention the operation and maintenance of the thermal unit and is silent about the working conditions of employees and engineers. “The MP power employees are feeling cheated by the actions of the state government,” he said.

Federation spokesperson V K Gupta questioned the financial logic of the joint venture, saying 70% of the Rs 4,665 crore project cost will be debt, which will come as loan from financial institutions. The remaining 30 equity will be shared equally by MPPFCL and SECL.

The state generation company’s share of 15% equity will come from the state budget. He said 15% equity can be sought from the lenders instead of giving 50% stake in the project to SECL.

The federation also said building the new units in the state sector make it easier to get personnel and spares similar units at Singaji and Satpura thermal projects.

  • Published On Jun 12, 2023 at 09:25 AM IST

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