NTPC and Indian Railways to build 1.3 GW power plant

1 September 2011


A joint venture of NTPC Ltd and Indian Railways is planning to invest about Rs 7700 crore in setting up a 1320 MW coal fired power plant in West Bengal.

The total cost of the project is to be invested by Bharatiya Rail Bijlee Co Ltd, according to a report prepared by Desein Pvt Ltd, a consultant appointed by the joint venture and submitted to the state government . The project is not likely to face any delay due to land acquisition, as Indian Railways is already in possession of all the land required for it. Nor will there be any issues related to resettlement and rehabilitation according to the Environmental Impact report.

NTPC, which holds a majority 74% stake in Bharatiya Rail Bijlee, formed the joint venture in 2007 with Indian Railways, to generate power exclusively for running the large network of Electric Multiple Unit coaches in the country.

Bharatiya Rail Bijlee is currently executing a 1000 MW project at Nabinagar in Bihar at an investment of Rs 5352 crore. The work on the project, conceived way back in 2002 during Lalu Prasad Yadav’s tenure as the railway minister, had suffered inordinate delays primarily because of the nature of the joint venture. Following series of meetings, the railways and NTPC agreed upon a plan covering the beneficiaries of the project and equity stake each partner will own, providing a template which the West Bengal project will adopt.




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