NTPC's Koldam project likely to have about 20% cost escalation

NEW DELHI: State-run NTPC'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, a Power Ministry official told PTI.

The Koldam project has 4 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 interval subsequently.

On asked whether there would be any cost escalation in the project, the official said, "Of course there would be cost escalation, it is an old project."

According to sources 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 benefitiary 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 at bus bar tariff and 2.75 per cent as the grid distribution share from the 800 MW project.

Bus bar tariff is the cost per kilowatt hour of producing electricity and includes the cost of capital, debt service, operation and maintenance, and fuel.

NTPC currently produces over 41,000 MW electricity and has about 16,000 MW of capacity under construction of which hydro power is likely to contribute over 1,300 MW.

The company is also executing two more hydel plants -- Tapovan Vishnugad (520 MW) and Singrauli (8 MW) -- in Uttarakhand.