Odisha demands grants for Pump Storage Projects from NCEF

Bhubaneswar, Aug 31 (PTI) Noting that coal bearingstates face the adverse effect of mining, reduction in forestarea, risks of environmental pollution and strain on waterresources, Odisha Chief Minister Naveen Patnaik today askedthe Centre to provide financial assistance for Pump StorageProjects (PSP) from the National Clean Energy Fund. "It is requested that financial assistance (grant) tothe tune of 75 per cent, the estimated coast of each PSP, maybe provided from the NCEF to bring down the cost of power fromthese projects in order to make the tariff affordable,"Patnaik said in his letter to Prime Minister Narendra Modi. Patnaik further said "Once the institutional mechanismis established and in-principle clearance is accorded by thegovernment of India, specific proposals will be submitted bythe state government for execution of renewable energyprojects including hydro-electric projects, more particularly,the PSPs." The CM said that whereas the coal bearing states haveto bear the brunt of negative externalities on account ofsetting up of the pit-headed thermal plants to cater to thepower requirement of the country, some other states have thelocational advantage of harnessing the renewable energy. "It is therefore, imperative that the coal bearingstates should be assigned reasonably lower limits forRenewable Power Obligation (RPO). Besides, the renewableenergy projects in the coal bearing states should be fundedfrom the NCEF. "Further, hydro-electric projects having installedcapacity of more than 25 MW, especially the Pump StorageProjects, may also be considered as renewable energy projects.These projects would help tremendously in meeting the peakdemand and also in balancing the Grid," Patnaik said in theletter. Meanwhile, Patnaik said the state government hasconducted pre-feasibility studies of three PSPs. They were:Upper Indravati with capacity of 600 MW, Balimela (400 MW) andUpper Kolab (320 MW). Together, these three projects’ capacity would be 1320MW which required investment of Rs 3950 crore. "The statesought an assistance of Rs Rs 963 crore for the three projectsfrom the NREF. MORE PTI AAM SUSABILNS