Kolkata, Dec 7 (IANS) Power utility CESC, an RPG Group company, Tuesday said it was diversifying into hydro-electric generation and would set up a 90 MW unit in Arunachal Pradesh.
CESC vice chairman Sanjiv Goenka told newspersons that the company would set up the Jarong Hydro Electricity project at a cost of Rs.600-630 crore.
It will be located in West Siang district of Arunachal Pradesh with an estimated capital cost of Rs.7 crore per MW, he said.
‘The location study was done for four to six months. We have received approval form the Arunachal Pradesh government for the project, which will involve construction of a diversion barrage across the river Siyom near Jarong village,’ Goenka said.
The financial closure will take place in 15-16 months and the gestation period would be around four years.
‘We are hoping to get environment clearance in 12 months. We hope the unit will be commissioned by 2015-16,’ he said.
Twelve percent of the power generated from the project will be given free to Arunachal.
‘We will sell part of the power in the merchant market,’ he said.
Goenka said water for the project would be available round the year from rivers Siyom, Shir and other tributaries.
He added that locals would be involved in the project, which should lead to employment generation and rapid economic development of the area.
Goenka said that as the project was planned as a run-of-river scheme, there would be no risk of local habitation being submerged.
Talking about other projects, he said CESC was building a 600 MW thermal power station at Chandrapur in Maharashtra through its subisidiary Haldia Energy Limited, which is scheduled to be commissioned in 2013.
He also said that financial closure for the 600 MW Haldia thermal power project in West Bengal’s East Midnapore district has been achieved and the projected is expected to be ready by 2014.
