By Our Reporter
SHILLONG, June 4: The state government has decided to revive the defunct Kynshi Basin Stage 1 hydropower project, which will be executed by the Athena Power Project Private Ltd.
The memorandum of understanding (MoU) for the 450 MW project was signed a long time ago, but Athena was hesitant about pursuing it. This was because the project was later estimated to be feasible for not more than 270 MW.
The company’s lack of interest made the project null and void.
After some time, the government called the company and asked if it would take up the project again.
Athena agreed on the condition that the MoU be amended by including the aspects of PSP, solar energy, and run-of-the-river. The Legal Department, however, said the state government and the company have to go for a new agreement.
The government cancelled the agreement, and when it decided to go for a new agreement by incorporating the company’s conditions, Athena was unsure of going ahead with the project, as the Centre had not issued the guidelines for the PSP.
The government came up with new policies, but the company felt the project would not be viable. Everything was back to square one.
After a series of discussions, the Conrad K. Sangma-headed Cabinet, on Tuesday, decided that the state government should sign the agreement with Athena again for the original project.
The agreement is likely to be sealed after the capacity of the project, expected to be 200-270 MW, is worked out.
The Cabinet also approved a proposal to develop the 24 MW Nongummer small hydropower project. The project will be a joint venture with a rider that Meghalaya will buy 30% of the power beyond the free 12% from this power project.
Another proposal approved by the Cabinet was the 13.5 MW project at Umran. It will also be a joint venture with a similar power purchase agreement.
The Cabinet also approved the proposal of the MeECL to increase the capacity of the Riangdo small hydropower project to 6 MW, entailing an expenditure of Rs 14 crore.
The request of the MeECL for Rs 30 crore to clear the dues of the contractors who implemented the Ganol hydropower project was approved, too.