• Electrical India
  • May 21, 2018

MoU between Bihar and NTPC Limited of Bihar

The MoU envisages transfer of Barauni Thermal Power Station (720 MW) and transfer of Bihar State Power Generation Company’s (BSPGCL) equity in Kanti Bijlee Utpadan Nigam Limited (KBUN) & Nabinagar Power Generating Company (Pvt.) Limited (NPGC) to NTPC...


 A Memorandum of Understanding (MoU) was entered amongst Govt of Bihar (GoB), Bihar State Power Holding Co Ltd (BSPHCL), Bihar State Power Generation Co Ltd (BSPGCL), North Bihar Power Distribution Company Ltd.(NBPDCL), South Bihar Power Distribution Company Ltd.(SBPDCL), Bihar State Power Transmission Company Limited (BSPTCL) and NTPC Limited on 15th May 2018 at Patna for Performance improvement of Power Sector in the State of Bihar. The MoU was signed in the presence of Nitish Kumar, Chief Minister of Bihar, R K Singh, Minister of State (Independent Charge) for Power and New & Renewable Energy  and Bijendra Prasad Yadav, Energy Minister, Govt of Bihar, Pratyaya Amrit, Principal Secretary, Department of Energy, Govt. of Bihar, Gurdeep Singh, CMD, NTPC Limited, Anand Kumar Gupta, Director (Commercial), NTPC, R Lakshmanan, Managing Director, BSPGCL and other dignitaries.

  The MoU envisages transfer of Barauni Thermal Power Station (720 MW) and transfer of Bihar State Power Generation Company’s (BSPGCL) equity in Kanti Bijlee Utpadan Nigam Limited (KBUN) & Nabinagar Power Generating Company (Pvt.) Limited (NPGC) to NTPC.

  NTPC, a Maharatna Company under Ministry of Power, Govt of India is the largest power generating company of India with a total installed capacity of 53651 MW (including JVs) from coal, gas, hydro, solar and wind power projects. NTPC is on an accelerated growth trajectory to meet this long-term target and currently has 21,071 MW capacities under construction. Company has two operational coal mines. NTPC in the past has demonstrated strong capability in turning around under-performing state owned power stations.

  Barauni Thermal Power Station (720 MW) which is located at Begusarai district in Bihar. The Plant comprise of Stage-I (2x110 MW) (under advance stages of R&M) and Stage-II (2x250 MW) (under construction).

  NTPC with its expertise in construction of power projects and contract management capabilities is expected to complete the balance works and achieve sustained commercial operation of units in a time bound manner. Nabinagar Power Generating Company (Pvt) Limited is a 50:50 Joint Venture Company of NTPC Limited and Bihar State Power Generation Company Limited (BSPGCL). The company is developing a 1980 MW (3x660 MW) Nabinagar Super Thermal Power Project in district Aurangabad, Bihar. The project is currently under-construction.

  Kanti Bijli Utpadan Nigam Limited (KBUNL) is a subsidiary company of NTPC Limited in Joint Venture with Bihar State Power Generation Company Limited (BSPGCL). Currently NTPC and BSPGCL owns 72.64%and 27.36% equity holding in KBUNL respectively. KBUNL owns and operates Muzaffarpur Thermal Power Station (MTPS) (2x110 MW+ 2x195 MW) situated at Kanti, District Muzaffarpur in the State of Bihar. Plant is under operation. All the three power generation facilities are envisaged to be transferred to NTPC from the effective date to be notified by Govt. of Bihar through a Statutory Transfer Scheme. The transfer of these power stations to NTPC will result in their optimal & efficient utilization, bring the tariff down and benefit the people of Bihar at large.

  Power from all the three power station shall be available to State of Bihar as before after approval by Ministry of Power, Govt. of India.