PTI reported that in a joint initiative, Kerala and Orissa have firmed plans to set up a 2,000 MW thermal plant in Orissa, sourcing coal from Baitharani fields in the state.

The project details were discussed at a meeting of senior officials from the two states, held at the initiative of Kerala chief minister Mr Ommen Chandy. The proposal would be taken up for the formal approval of the two governments soon.

The center had earlier allotted Kerala, Orissa and Gujarat to prospect coal equivalent to 3,000 MW each for the three states from the Baitharani fields.

Initially, Kerala had thought about setting up a thermal plant in Kasargode district by bringing its share of coal but that plan had to be dropped due to local resistance. Later, the state also considered the idea of building a plant jointly with the NTPC but that also did not work out.

It was against this backdrop that the idea of a joint initiative by Kerala and Orissa was mooted.

To start with, the two states would form a Special Purpose Vehicle for implementing the project, estimated to involve a cost of INR 8,000 crore when completed in three phases of 650 MW each.

The power generated by the plant would be equally shared by the two states, which was expected to make up power crunch faced by them and meet the growing future needs.

(Sourced from PTI)