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Rajasthan plans to divest stake in 8 thermal power units

Short on cash, the state government on Tuesday said it would disinvest stake in eight thermal power-producing units of Chhabra and Kalisindh plants.

The proposal got an inprinciple nod of the state cabinet during a meeting presided over by chief minister Vasundhara Raje.

Briefing the media about the decision, state parliamentary affairs minister Rajendra Rathore said that this decision was taken given the mounting losses at these plants and as an attempt to improve the financial condition of the power department.

The units would be divest ed through competitive open bidding system. Rathore said a consultant would be appointed to execute this process. "The consultant's report would be reviewed by the cabinet, which would then take a final call on the disinvestment,'' he said.

Two operational power production units of 600MW each would be disinvested at Kali Sindh Thermal Power Plant. Four operational units of 250MW each and two under-construction units of 660MW each would be disinvested at Chhabra Thermal Power Plant, Rathore said.

"The two operational units at Kali Sindh Power Plant would be disinvested through tariff-based bidding process. These units caused losses of Rs 524 crore in 2014-15 and additional losses of Rs 514 crore are estimated for the current year. Low plant availability factor and station heat rate standards were the main reasons behind these losses,'' he said.

He added that two new units of 660MW each would be installed at Kali Sindh plant.

Source: TOI