Kerala, Orissa to join hands to set up power plant

The governments of Kerala and Orissa will form a Special Purpose Vehicle for implementing 2,000 MW thermal power plant propject in Orissa at an estimated cost of Rs. 8,000 crore. This will be completed in three
phases of 650 MW each.

The power generated by the 2,000 MW capacity plant will be equally shared by the two states.

The coal for the power plant shall be sourced from the Baitharani coal fields of Orissa.

While the Kerala government has approved the project, it is yet to be approved by the Orissa government.

The project has finally been approved after various hurdles. Earlier, the centre had allotted Kerala, Orissa and Gujarat coal prospects equivalent to 3000 MW for each state from the Baitharani fields. When Kerala was allocated the coal block, the initial plan was to have the Kerala State Electricity Board set up a 1,050-MW power plant at Cheemeni in Kasaragod district to utilise the coal. The plan was however shelved due to local resistance.

Subsequently, the Kerala government tried to involve National Thermal Power Corporation Ltd. in a joint venture with the KSEB to set up a power plant of 1,050-MW capacity in Baitarani West. But NTPC Ltd.