Govt to cancel 550-MW private power projects

SHILLONG: After wasting 10 precious years, the state government woke up late to cancel several power projects of over 550 MW pending with private power companies.
A meeting is scheduled on Thursday to finally decide on the cancellation of agreements with some private companies.
According to the list, Umduna (57 MW) and Umjaut (69 MW) projects to be developed by ETA Star Infrastructure Ltd, Mumbai, are being considered for cancellation due to the delay in submission of detailed project reports.
Rangmaw project (65 MW) being executed by Sew Energy Ltd, Hyderabad, was also found to be not feasible.
Kynshi Stage II project (325 MW) by Jaypee Meghalaya Power Ltd, New Delhi, is also held up due to the uranium deposits in the area.
Memoranda of understanding for these projects were signed by the government between 2007 and 2014 and these hydro projects allotted to the private companies were based on Build Own Operate and Transfer (BOOT).
The Narringre thermal project in East Garo Hills (300 MW), allotted to GC Power Private Limited, Hyderabad, and Captive Thermal Power project at Shallang in West Khasi Hills (60 MW) by Brijraj Power and Metallics Ltd, Shillong are also facing cancellation.
MoUs for these projects were signed by the government from 2010-11.
There are as many as 16 power projects mostly undertaken by private power developers.
It was first the Congress government in 2007 that had decided to allot power projects to private companies which had evoked protest compelling the government to keep the projects in abeyance.
Mukul Sangma was holding the post of deputy chief minister in charge power then.
Later, when non-Congress parties came into power in 2008, several projects were cancelled and a committee was formed to rewrite the memorandum of agreement with the companies.
After the collapse of the non-Congress government, the Congress-led government, after a comeback, allotted power projects to private companies with certain conditions.