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Web Exclusive | April 2013

NTPC's Koldam hydel unit may see 20% cost escalation

Government-owned National Thermal Power Corporation's proposed hydel project at Koldam in Himachal Pradesh may start power generation this year but with a cost overrun of about 20 per cent of the approved investment of Rs 4,527 crore when fully commissioned.

The first 200 mw unit of Koldam project may come up by the end of this financial year. The Koldam project has four units of 200 mw each and the Satluj River is the water source. The first unit is expected in one year and other units at 6 month intervals. The company would incur an additional 20 per cent sum for setting up the project, which amounts to an expenditure of over Rs 900 crore over and above the estimated cost.

The 800 mw project, the execution of which was started in 2003, has been delayed mainly due to environment and geological hurdles.

It is also one of the initial projects proposed by NTPC when it diversified into hydro power generation. The project was earlier slated for commissioning in 2009. The beneficiary states of the project are Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir and Chandigarh.

Himachal Pradesh, the home state of the hydel plant, would get 12 per cent free power as royalty, 15 per cent as bus bar tariff and 2.75 per cent as the grid distribution share from the 800 mw project.

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