NEEPCO abandons 500 MW thermal power project in Meghalaya

economictimes.indiatimes.com:

North Eastern Electric Power Corporation Limited (NEEPCO) has conveyed its decision to withdraw from the implementation of a proposed 500 megawatt thermal power project in Meghalaya. According to Power Minister AT Mondal, NEEPCO communicated its intention to terminate the thermal power project, highlighting a shift in focus towards exclusively green and clean energy endeavours.

Mondal said that the decision was reached during discussions with the Chairman and Managing Director (CMD) of NEEPCO, who also holds the CMD position at NTPC in New Delhi. The minister underscored that a primary challenge with thermal power projects lies in securing a dependable coal linkage.

He emphasized that without a guaranteed supply of coal, significant investments could result in futility. The allure of benefits provided by hydel power projects, such as 3% free power allocation and 1% power allocation for local area development, is absent in the context of thermal power initiatives.

Mondal acknowledged the need to evaluate proposals for power projects, but highlighted a substantial hurdle: the expectation of private parties that the government will procure 100% of the generated power. This requirement poses a significant obstacle to the feasibility of these projects.

In parallel, the minister divulged discussions with NTPC regarding power generation from waste materials. However, he revealed that the quantity of waste generated isn't sufficient to render the project economically viable.