Lucknow: The Uttar Pradesh government on Thursday extended the time of memorandums of understanding (MoU) signed with private developers for setting up thermal power projects in the state for a maximum of 18 months.

"The decision was taken during a meeting of the state cabinet chaired by the Chief Minister," Industrial Development Commissioner (IDC) A K Gupta told reporters here.

These MoU's were signed by the previous government and the Energy Task Force had recommended to extend the time of MoUs signed with private developers.

The IDC said that total 10 MoUs were signed during previous government and it was estimated that 10,970 MW power would be generated in the future.

"Eighteen months have passed and as the Chief Minister said in the house that nine projects were still on the papers," Gupta said.

He said that the main reason was that meeting of the coal linkage committee was not held by the Centre, due to which coal allotment could not be done.

"The shortcoming in the nine projects was that coal linkage could not be done. Efforts have made by the developers as well as the government, but it does not seem to happen in near future," the commissioner said.

He said that there were two options before the state: either to forfeit the security of the developers which amounts to Rs 500 crore or give them a chance to bring coal.

"There is no loss of the state in extending time of MoUs, but it will gain if they bring coal as the power generation would increase," he said. The IDC said that by giving extension to the developers the state was not forgoing its right of forfeiting security deposited by the developers.

"At present there is a gap of 2,500 MW in demand and supply of power and the problem is how to fulfil it. It is necessary to increase generation," he said.

Gupta said that maximum 18 months extension has been given to developers. "The extension has been given as per the individual request of the developers, but it would not exceed 18 months," he said. He said that there was a conception that why the government was extending the MoUs and not forfeiting the security.

"The Chief Minister, cabinet and chief secretary are stressing that generation must be increased. The second option is always available as the government is not forgoing its right," he clarified.

The IDC said that cabinet also gave approval to shift three projects from Bargarh to Lalitpur, Farukkhabad to Barabanki and Ghazipur to Mirzapur, which were facing water problem.

Managing Director UP Power Corporation Limited Avnish Awasthi said that all efforts were being made to augment power generation in the state. "The point is to ensure availability of power," he said.


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