Mineral-rich states seek share from power projects

NEW DELHI: After seeking increase in coal royalty rates, mineral rich states of Orissa, Jharkhand and Chhattisgarh have now demanded levy of duty on power generation to ensure equitable dispensation to the coal bearing states.

In a representation to Prime Minister Manmohan Singh, these states also demanded allocation of an appropriate portion of power generated in their respective states at a variable cost plus formula bound incentive.

Orissa chief minister Naveen Patnaik alongwith Chhattisgarh and Jharkhand chief ministers Raman Singh and Madhu Koda met the Prime Minister here on Saturday to discuss issues related to the power sector in the states, a statement from the Orissa Government said.

Karnataka Home Minister and the Rajasthan Mining Minister also accompanied the Chief Ministers for the meeting.The chief ministers also brought to attention of the Prime Minister the need for a central legislation that would address all issues faced by the coal producing states.

The group of chief ministers also asked for a token contribution by the Independent Power Producers (IPPs) for ecological regeneration in the vicinity of the power plants, which would ensure a more equitable dispensation for the coal bearing states.

The ministers urged the Prime Minister that allocation of coal resources for power plants, to be set up through the MoU route, should not be denied to IPPs as this would ensure certain advantages to the states on mutually agreed terms.

The Prime Minister assured the group that the issues would be looked into carefully and that he would call a CMs meeting at the beginning of February on the issue.