Govt approves SPV for its Odisha thermal project

Govt approves SPV for its Odisha thermal project

SRINAGAR: the state government Thursday approved the formation of Special Purpose Vehicle (SPV) for development of the coal block at Kudnali Laburi in Odisha allocated jointly to JKSPD and NTPC by the Union Ministry of Coal.
An official handout issued here said the approval for the formation of SPV for development of Coal Block at Kudnali Laburi was given by the Cabinet which met under the chairmanship of Chief Minister Omar Abdullah here.
The statement also said the SPV Board of Directors will compose of five directors, including administrative secretary Jammu and Kashmir Power Development Department who will be the Chairperson of the Board of Directors.
The approval also includes signing of Joint Venture Agreement by the J&K SPDC (Jammu and Kashmir State Power Development Corporation) and NTPC besides setting up of End Use Power Plant in Odisha with NTPC, it said.
“The allocation of the Coal Block is a major achievement for Jammu & Kashmir, which suffers from Energy deficit especially during winter season when the generation of power through various HEPs decreases significantly owing to low discharge in the rivers,” the handout said.
It said the state government with this major initiative will be able to establish a dedicated base load Thermal Power Station which would effectively wipe out the current energy deficit of nearly 28 per cent and improve the reliability of power supply round the year.
The decision is in line with the broader policy of the state government under the leadership of Chief Minister to make the State Energy sufficient by harnessing huge hydro potential available to the State along with the Solar and Thermal Power, it said.
“Within next five years the State Government expects that these efforts will prove to be fruitful for the people and will give major boost to the economy of the state,” it added.