Kohima: The Nagaland Power Department has informed that uncertainty looms over the 22.92 MW Heavy Fuel Oil (HFO) based Dimapur Thermal Power Station (TPS).
In a statement, Nagaland Additional Chief Engineer, Nagaland Power Department K Miachieo last evening said the project estimated at Rs 105.57 crore was committed for funding by the then Prime Minister Atal Bihari Vajpayee during his visit to the state in October 2003 as part of ‘economic package’ to the state.
The contract was awarded to Bharat Heavy Electrical Limited (BHEL) and accordingly in 2004, the Ministry of Development of North Eastern Region (DoNER) allocated Rs 32 crore from non-lapsable central pool of resources for the project, said the statement.
It added that besides ‘this one time assistance’, no fund was forthcoming and therefore on June 13, 2006, BHEL withdrew from the contract.
The statement said the Deputy Chairman of Planning Commission on May 28, 2007 informed Nagaland Chief Minister that the TPS Dimapur was ‘highly un-economical’ and advised the state not to pursue for further funding.
Ministry of DoNER in November 2011 conveyed the decision of the Committee of Secretaries (CoS) convened by the Union Cabinet Secretariat, directing Nagaland Government to ‘auction the procured equipment and remit the proceeds to Government of India’.
Shortfall of proceeds as well as the amount released by DONER was to be waived and land acquired for the project and civil structures to be utilised by the state government, the statement said. (UNI)