AIPEF opposes increase in power generation capacity by Madhya Pradesh government through joint venture


Letter from All India Power Engineers Federation (AIPEF) to Chief Minister and Energy Minister of Madhya Pradesh


(Translation of letter in Hindi)



  1. Honorable Chief Minister,
    Government of Madhya Pradesh, Vallabh Bhawan; Bhopal (M.P.)
  2. Honorable Energy Minister,
    Department of Energy; M P government; Vallabh Bhavan; Bhopal (M.P.)

Subject: Madhya Pradesh Power Generating Company to set up a state-owned new unit at the vacant place of retired thermal power units in Amarkantak thermal power plant.


In relation to the above topic, it has come to the notice of All India Power Engineers Federation that It has been decided to sign an MoU and form a joint venture company between MPPGCL and SECL for setting up a new unit of 1X660 MW to increase the power generation capacity at Amarkantak Thermal Power Plant by Madhya Pradesh Production Company, which is not in the interest of the production company’s employees and the people of country/state.

It is a matter of great regret that in spite of the above facts, the new unit for Amarkantak Thermal Power Station is not being set up under the full ownership of the Government of Madhya Pradesh and it has been decided that the new unit will be set up with MPPGCL by signing MoU with SECL for joint venture a, in which 15-15% equity will have to be invested by both the companies.

While it is known that the committee constituted by Madhya Pradesh government had recommended setting up of two units (660MWX2) under full ownership of MPPGGL. Also it must be mentioned here that according to the provisions given in the Electricity Act 2003, It is mandatory to take care of the service conditions of the employees, but it has also come to the notice of the Federation that there is no mention of the service conditions and career planning of the personnel in the said MoU, nor any mention has been made about the O&M of the new unit. In such a situation, seeing their future as bleak, the power employees are very worried and angry.

Under Section 3 of the Electricity Act-2003 in December 2010 by the Ministry of Power, Government of India explanation of “Electricity Tariff Policy” was issued by the Ministry of Power, Government of India in December 2010, according to which “All future requirement of electricity except in cases of expansion of existing projects or where there is a State controlled/owned company as an identified developer and where the regulators would need to resort to tariff determination based on norms to be competitively procured by distribution licensees”, i.e., it is not possible for distribution licensees to purchase power through Power Purchase Agreement (PPA) from a new power producer as per the above explanation.

PPA (Power Purchase Agreement) permission for Amarkantak new project has been obtained only because of being a ‘state controlled/owned company’ and ‘expansion of existing projects’, which can never be transferred in the name of a private company. If this is done, then in that case, the Power Purchase Agreement will have to be obtained by the Joint Venture Company with M.P.P.M.C. Ltd. through TBCB (i.e. competition), otherwise it will be a clear violation of the mentioned rule of the Government of India.

When Madhya Pradesh Power Generating Company has spent lot of time and resources for all the approvals for the project such as environmental, water, coal, land, forest land, power communication , in such a situation it is completely inappropriate to waste time and additional capital in transferring all the approvals in the name of a new company (which has not yet been formed)?

Moreover, delay in the project cannot be avoided in such a situation, which will be a direct loss to the government and the public, while the amount of money SECL is looking for, the delay in the project will increase the possibility of cost which can be avoided.

In addition to the above, if the said project is fully implemented by the Madhya Pradesh government, then there would be no question of the above-mentioned controversies, but being a super critical plant of 660 MW, which would be like plats at Singaji (20X660 MW/) and Satpura (1X660 MW), so that additional equipment can be easily exchanged in emergency and the total manpower required will also be minimum. Along with this, the norms prescribed by MPERC “to keep 30% of the state’s own production capacity of the electricity requirement of the state” can also be complied with.

Therefore, respected Sir, All India Power Engineers Federation humbly requests you to take into account the working style and disappointing experience of most of the new companies formed through joint ventures within the country, as per the recommendation of the committee constituted by the Madhya Pradesh government and MPERC (i.e., construction of two units of 660 MW each by the Madhya Pradesh Power Generation Company compulsorily and keeping the state’s own production capacity at least 30% of the total power demand of the state) and considering all the above aspects seriously, in the interest of the state, for the production of the Madhya Pradesh government’s wholly owned new power house in the Amarkantak thermal project, instructions should be given to the concerned immediately so that due to the increasing demand for electricity in the state and the retiring units, the state’s own production capacity does not decrease and Madhya Pradesh remains self-reliant. This will not only lead to all-round development of the state, but also the common people of the state will feel safe.

With regards,

Shailendra Dubey
Chairman AIPEF

Copy (sent to the following for information and necessary action):

  1. Hon’ble Energy Minister, Government of India Delhi
  2. Principal Secretary; Department of Energy, Government of India Delhi
  3. Chief Secretary; Government of Madhya Pradesh, Ballabh Bhawan; Bhopal.
  4. Principal Secretary; Energy Department, Government of Madhya Pradesh; Bhopal.
  5. Managing Director; M.P.(Power Management/Power Generating) Company Limited, Jabalpur.



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