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Government of India Ministry of Development of North Eastern Region ****** MINUTES OF THE MEETING CHAIRED BY MS. JAYATI CHANDRA, SECRETARY, DONER TO REVIEW THE STATUS OF PALATANA POWER PROJECT, ACCOMPANYING TRANSMISSION AND COORDINATION ISSUES . Date : 17th January, 2011 (11:00 AM) Venue: Committee Room, Ministry of DONER List of participants is annexed The meeting on 17.1.2011 is a follow up of the meeting held on 16.12.2010 and specifically discussed the following issues: (i) Status of the sub-stations being constructed by the PGCIL and the State Governments (ii) Contribution to North East Transmission Company by State Government (iii) Forest clearances by State Governments (iv) Supply of Gas Turbine-2 by BHEL, Hyderabad for Palatana Unit-2 – urgency due to time limit of transit facility obtained from Bangladesh. Page 1 of 12 Status of sub-stations Sl. Sub-station & No. lines 1. State Implementing Issues & Status Agency Silchar Assam PGCIL To be commissioned matching with (i) 400/132 KV, Unit 1 of generation. Completion by 2 x 200 MVA November, 2011. This completion Silchar schedule may be rather optimistic. sub- station Hence, needs tight monitoring. (ii) 132 KV D/C PGCIL is also constructing lines to line from 400 connect with the Assam Grid. KV (PGCIL) Silchar Sub- station to 132 KV Silchar (AEGCL) Substation. (iii) 132 KV D/C line from 400 KV (PGCIL) Silchar sub- station to 132 KV Hailakandi (AEGCL) substation. 2. Silchar 132/33 KV, Assam AEGCL Assam AEGCL Completed. 2 x 25 MVA substation 3. LILO of 400 KV 1. Not started yet as aviation D/C Palatana- clearance from Airports Silchar- Authority of India is required Page 2 of 12 Bongaigaon line since at Guwahati airport is within 3 km radius of the 400 Kukurmara KV (Azra) Formalities for the clearance station. sub- Azra sub-station. have been completed by the Assam Government. The matter is under consideration of the Airports Authority of India. 2. AEGCL expects land to be handed over Administration by by District end of December, 2010. 3. AEGCL has finalized notice inviting tender for 400 KV into 220 KV sub-station. 4. Assam Government released Rs.30 crore has to AEGCL for 2010-11. It has assured AEGCL for another Rs.100 crore in 2011-12. 5. However, information about the firm date for commissioning and complete financial closure is not available. Hence, it is clear that Azra will not be ready by December, 2011. 6. Under NLCPR, Rs.36.22 crore has been sanctioned in 2007 for 220 KV x 132 KV substation at Azra. This project is still incomplete and delayed by 7 months. 7. OTPC is of the view that this Page 3 of 12 sub-station is unlikely to be ready before the commissioning of even the 2nd Unit of Generation. 8. This project is very essential to enable Assam to evacuate 240 MW power from the Palatana Project. 9. The total cost of the substation is Rs.189 crore. The funding is not fully tied up. Therefore, Secretary, DONER advised that Assam Government should go in for a single source of funding such as NLCPR / SPA / State Plan. 10. AEGCL is also not clear about the completion date. However, AEGCL feels that 315 MVA Transformers will be sufficient to draw power from the first phase. 11. AEGCL should send the full status to this Ministry – 4. Bongaigaon Assam PGCIL Status of land, Status of AAI clearance Project components Source of funding Completion date To be commissioned by November, 2011 matching with Unit 1 of generation. 5. Hailakandi Assam Assam The 2nd tranche of ADB loan for Page 4 of 12 132/33 KV, Electric Grid power sector in Assam is going to be 2x16 MVA sub- Corporation used for this sub-station. Project will station. Ltd. (AEGCL) be completed only December, 2013 and will not be ready for drawal of power by 2011. No clearances from MOEF or GOI required as this is a power transform 6. Srikona Assam Assam This is a commissioned sub-station. Electric Grid Corporation Ltd.(AEGCL) 7. Byrnihat Meghalaya Meghalaya 1. Now the Meghalaya Energy Government has proposed Corporation the entire funding of Rs.127 Ltd. crore out of NLCPR for 201112. 2. The land is available with the Government of Meghalaya. 3. It will be implemented as a deposit work by PGCIL on behalf of Government of Meghalaya. 4. The DPR has been prepared. It will be vetted by CEA. 5. Secretary, DONER directed that NLCPR meeting be scheduled at the earliest to discuss the proposal of Byrnihat sub-station. 8. Melriat, Aizawl Mizoram PGCIL To be commissioned matching with Unit 2 of available. generation. The work Land is involves Page 5 of 12 upgradation of existing sub-station. 9. Imphal Manipur PGCIL To be commissioned matching with Unit 2 of generation and completed by March, 2012. Land is available. 10. Surjyamanina gar SS Tripura and two lines Tripura State Funding obtained from NLCPR. Electricity TSECL has awarded contract for Corporation Surjyamaninagar Ltd. (TSECL) two associated transmission lines. Will Sub-station and be completed by December, 2012. The important issue that arose that since this sub-station is completed only by December, 2012, Tripura has to make contingency plan for drawing power from Unit 1. 11. P K Bari Tripura PGCIL To be commissioned by December, 2011 matching with Unit 1 of generation. 12. Pasighat Arunachal Arunachal The sub-station will be completed by Pradesh Pradesh May, 2011. It is being funded out of Power State Plan. Department 13. Dimapur – Nagaland Nagaland The work is being done through State upgradation Power Plan and will be completed by of Department March, 2012. existing 132/60 MV sub-station at Dimapur being upgraded to 220 KV. Page 6 of 12 2. Two other issues were highlighted regarding the preparation of the State to draw power: (i) It was agreed that the distribution system of the States upto the final consumer level should be ready in time so that the power allotted to it from Palatana is fully used for the benefit of the people of that State. (ii) Principal Secretary (Power), Arunachal Pradesh stated that if any State is not ready to draw its share of power from Unit 1 of the project, in the interim period, Arunachal Pradesh would like to draw it so as to use it as construction power for the various hydro power projects coming up in that State. This of course is an issue of negotiation and the understanding between the power company and the other State Governments. (iii) Officials of OTPC expressed their apprehensions about the States not being fully ready to draw their share of power which may render the generating facility having idle capacity and the prospect of OTPC having to pay penalty to ONGC for drawing the gas. Equity participation in NER States by North East Transmission Company 3. Meghalaya – Planning Commission has approved Rs.17 crore as SPA to Meghalaya for equity participation. RC, Meghalaya informed that the Ministry of Finance has raised certain query. However, Meghalaya has to pay Rs. 5 crore to NETC by March, 2011 which it can comfortably contribute from its own resources. Page 7 of 12 4. Nagaland – As the State Government has to pay Rs.18 crore, it would like to pay it in installments. The State is however, ready to pay Rs.6 crore by March, 2011 to NETC as its contribution. Forest clearance related issues 5. Assam - Principal Secretary (Forest), Assam informed that the Assam Government is preparing reply on the conditions imposed by M/o E&F. Secretary, DONER directed him to give this aspect the highest priority. Meghalaya - Confirmation on Forest Rights Act is awaited by M/o E&F from the State Government. Supply of Gas Turbine-2 by BHEL, Hyderabad for Palatana Unit-2 – urgency due to time limit of transit facility obtained from Bangladesh. 6. For commissioning of Unit 2 of the generating unit by March, 2012, Gas Turbine No.2 is being assembled based on the supply of Rotor from GE-USA coming in BHEL, Hyderabad. There are apprehensions that BHEL, Hyderabad will not able to deliver GT Unit 2 in time. If BHEL is not able to deliver in time, it will delay transportation through Bangladesh. Time limit for transport arrangement between OTPC and Bangladesh (upto June, 2012, as per the MOU) will expire, needing fresh negotiations with the Bangladesh authorities and also re-building of by-passes, since the ones being built now will be washed off or dismantled during the monsoon. In the event of the delay in the commissioning of 2nd Generation Unit, OTPC will have to pay penalty (as per the stipulation of “take or pay provision of the Gas Supply & Purchase Agreement”) to ONGC if it is not able to use the ONGC’s gas as per agreement. Page 8 of 12 7. The suggested solution was that the turbine being assembled for Bawana Project in NCR should be diverted for the Palatana Project. As per the current schedule of assembling of GT at BHEL, Hyderabad, OTPC has been given third priority after Pipavav (Gujarat) and Bawana (NCR) projecting its dispatch ex-Hyderabad by end of March, 2011 as against the earlier commitment of February, 2011. 8. CMD, ONGC has written to CMD, BHEL (vide letter No. CMD/09 dated 5.1.2011) stating the following constraints owing to the long distance to be covered through India, through the sea route and most importantly through inland waterways through Bangladesh. “Given that the GT has to be transported to Kolkata by sea via Machhlipatnam port (transit time : Hyderabad – Machhlipatnam around 6 weeks and Machhlipatnam to Kolkata around 3 weeks) and beyond Kolkata to Ashuganj in Bangladesh (transit time of around 3 weeks), and to Akaura Check Post by the Road Network in Bangladesh (transit time of around 2 weeks), any slippage on account of unforeseen circumstances in the long chain of logistics could result in delay in crossing the borders of Bangladesh. This would have following ramifications: (i) The by-passes being constructed on 16 water bodies (rivers, ponds, rivulets etc) in Bangladesh for the passage of the ODCs shall be washed away or badly damaged during the monsoon, requiring reconstruction of these by-passes, involving fresh permission and enormous expenditure. (ii) The MOU with Government of Bangladesh for the transit of the ODCs, being valid till 30th June, 2012, shall require revalidation, which is a very cumbersome & challenging process and could take a couple of months (may not even materialize, in a worst case scenario). Page 9 of 12 (iii) The 2nd Unit of OTPC (363 MW), scheduled for commissioning in March, 2012 (within the 11th Plan) may slip by 8 to 12 months.” 9. CMD, ONGC has requested CMD, BHEL to prepone the supply of Gas Turbine to Palatana in view of the above issues. OTPC officials also brought to the notice that as per extant instructions of DG, Shipping, vessels are not allowed to sail in Bay of Bengal. Secretary, DONER said that this would be taken up with the PMO and Cabinet Secretariat by her. Meeting ended with vote of thanks to the chair. ……. Page 10 of 12 Annexure MEETING TO REVIEW THE STATUS OF PALATANA POWER PROJECT, ACCOMPANYING TRANSMISSION AND COORDINATION ISSUES . List of participants 1. Secretary, DONER ………. In the Chair 2. Sh. U.K. Sangma, Secretary, NEC 3. Ms. Jayshree Mukherjee, JS (JM) 4. Sh. P.K. Pattanaik, JS (PKP) 5. Sh. Jolly Newman, Joint Secretary(Power), Government of Mizoram 6. Dr. H.K. Paliwal, Principal Secretary(Power) Arunachal Pradesh 7. Sh. R.K. Vaish, Pr. R.C. Tripura 8. Sh. Pankaj Jain, Pr. R.C. Govt. of Meghalaya 9. Shri Sarawwati Prasad,Principal Secretary Env. and Forests, Government of Assam 10. Sh. Arun Kumar, Director, Ministry of Power 11. Sh. Prahlad, MOP, CEA 12. Sh. D.K. Saxena, Chief Engineer, CEA 13. Sh. Swapan Handique, MD, Assam Electricity Grid Corporation 14. Ng. Birjit Singh, S.E. Elec Deptt. Manipur 15. Sh. P. Wangchem, Pr. Chief Engineer-cum-Secretary, Page 11 of 12 Govt. of Sikkim 16. Sh. A.M. Pavgi, AGC(Engg) Power Grid 17. Sh. CD. Sais, Director, Meghalaya Energy Corpn. 18. Sh. R. Binchhlo Thonts, Commissioner & Secretary(Power), Government of Nagaland 19. Sh. S.K. Dube, M.D. OTPC 20. Sh. Shree Narayan, DGM, OTPC 21. Shri ImLi, AO, S.E.(P&G)Power, Govt. of Nagaland 22. Sh. R.K. Madan, Director, OTPC 23. Sh. M. Krishna Kumar, Director(Projects), NETC 24. Shri Anil Jain, GM(CMG), Power Grid Corporation of India ……… Page 12 of 12