Engineers express opposition to Amarkantak power project JV in MP

13 Jun 2023 CW Team

The All India Power Engineers Federation (AIPEF), an organisation representing engineers working with state utilities, has expressed opposition to the decision made by the Madhya Pradesh Power Generating Company (MPPGCL) to construct replacement units for the Amarkantak power project in collaboration with the South Eastern Coalfields. They cited previous unsuccessful joint ventures as the basis for their objection.

In a letter addressed to Shivraj Singh Chauhan, Chief Minister and Shailendra Dubey, Chairman of the federation, stated that the responsibility for building the two 660 megawatt coal-fired units should be given to the state generation company, as recommended by a committee formed by the state government.

Dubey highlighted that the memorandum of understanding (MoU) fails to address crucial aspects such as the operation and maintenance of the thermal unit, as well as the working conditions of employees and engineers. He expressed the disappointment of MP power employees who feel deceived by the actions of the state government.

V K Gupta, the spokesperson for the federation, questioned the financial viability of the joint venture. He pointed out that 70% of the project's cost, amounting to Rs 4,665 crore, will be financed through loans obtained from financial institutions. The remaining 30% will be split equally between MPPGCL and SECL.

Gupta further argued that instead of granting SECL a 50% stake in the project, the state generation company could secure 15% equity from lenders. This would allow them to seek the required funds without compromising their ownership.

The federation also emphasised that constructing the new units within the state sector would facilitate the procurement of personnel and spare parts from similar units at Singaji and Satpura thermal projects.

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