Thursday, July 28 2005 18:17 Hrs (IST) - World Time -

Patna: Abandoning its plan to firm up a joint venture with the National Thermal Power Corporation (NTPC) for revival of its sick Barauni and Muzaffarpur Thermal Power stations, Bihar State Electricity Board (BSEB) has decided to award a Rs 550 crore renovation, modernisation and maintenance contract to the BHEL under supervision of the NTPC.

BSEB chairman M M Singh said today (July 28, 2005) a PSU Navratna-- Bharat Heavy Electrical Limited (BHEL) had been assigned to execute the job of modernisation, maintenance and renovation of the two units to help start generating 320-mw power on completion of the work two years from now.

Barauni and Kanti stations are the only two-power generation units left with Bihar after its bifurcation. While the Muzaffarpur unit is closed, the Barauni plant is generating a meagre 20 mw.

The State is heavily dependent on NTPC and Power Trading Corporation (PTC) for mobilising electricity to meet its domestic and commercial requirements.

BSEB chief engineer (project and planning) B P Ambastha who had issued the letters of intent to BHEL and NTPC, said the funds for renovation, maintenance and modernisation of the two sick units, would be arranged under the Rashtriya Sam Vika Yojana (RSVY).

"A proposal for securing necessary funds under RSVY is being prepared for approval of the centre," he said.

Bihar Government had earlier planned to firm up a joint venture with the NTPC for revival of the two units. The NTPC's offer envisaged a 51 per cent share for the corporation and the rest for BSEB under the joint venture.