IPPs have to retain 51% stake for three years


    Reported by Chinmaya Dehury/Edited by Sandeep Sahu

    Bhubaneswar, Aug 29

    After port and steel projects in the state, the Odisha government has now decided that independent power producers (IPPs) too have to retain at least 51% stake in their power projects for a minimum of three years from the date of commissioning of their plants.

    “The IPPs cannot dilute their stake holding to below 51% for at least three years from the date of commencement of their operations. Also, any stake sale beyond this lock-in period will need prior permission of the state government”, said a draft MoU being prepared by the Energy department.

    Industrial Promotion & Investment Corporation of Odisha Ltd (IPICOL) has prepared the draft MoU to be signed with the 19 IPPs whose original pacts have lapsed.

    The department is shortly going to extend the validity of memorandum of understanding (MoU) of six power projects in the state. The decision to extend the MoUs with these six was taken after physical verification of the progress of their work.

    The IPPs whose MoUs are awaiting extension include Tata Power, GMR Kamalanga Energy Ltd, Navabharat Power Ltd, Visa Power, Sterlite Energy Ltd, Lanco Power and K V K Neelachal Power to name a few.

    According to the terms set in the new draft MoUs, the IPPs have to comply with the mandatory clause to promote employment of locals. The clause stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in the skilled category and 30% in the supervisory and managerial cadre while giving them the option to fill up the post of senior executives from the open market.

    The IPPs also have to take steps to develop ancillary and downstream units around the mother plant.

    It has also asked the IPPs to take steps for development of infrastructure for supply of power to the surrounding area on periphery villages falling within a radius of five km from its project site.

    So far, two IPPs – Sterlite Energy and GMR Kamalanga Energy – have commissioned their units. While Sterlite Energy has fully operationalized its 2400 MW coal-based plant at Burkhamunda near Jharsuguda, GMR has put on stream two 350 MW units of its plant at Kamalanga in Dhenkanal district.