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Web Exclusive | October 2012

Bihar's Chausa power project to start by month-end

Power-starved Bihar has finally made headway in developing the 2X660 mw Chausa thermal power station in Buxar. The Bihar Government is expected to enter into an agreement with SJVN (formerly Satluj Jal Vidyut Nigam) this month for setting up the supercritical power station on a build-own-operate basis.

SJVN, a joint venture of the Centre and the Government of Himachal Pradesh, will offer 85 per cent generation from Chausa to the Bihar State Electricity Board (BSEB) at regulator-determined tariff. The residual 15 per cent will be sold in the open market.

A source in Bihar government told a business newspaper that the government will enter into a power purchase agreement with SJVN by the end of this month. Though SJVN is entrusted with the primary responsibility of securing coal supplies, the State Government has opened a lifeline for the project by convincing the Centre to grant a tapering linkage to the proposed thermal power plant.

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