From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Aug 28: With the Centre asserting that it would not allot coal to thermal power projects involving private companies, Karnataka has decided to drop private sector Larsen &Tourbro (L&T) from implementing its 1600 mw thermal power plant in Chattisgarh.

The State-owned Karnataka Power Corporation Ltd and L&T had signed an agreement to implement the Rs 9,015 crore power project in Chattisgarh.

The joint venture agreement for implementing the coal-based super critical thermal power project at Godhna in Chhattisgarh between KPCL and L&T was signed on February 24, 2010. An agreement was entered with the Central public sector undertakingPower Grid Corporation of India in 2011 for evacuation of power.

However, after the Centre’s decision not to allot coal for the project involving private firm (L&T), the State Government has decided to sign a fresh MoU with the Centre for implementing the project.

Under the proposed plan, the State and Centre would share power in the ration of 51: 49, according to Karnataka’s Energy Minister D K Shivakumar.

TheChhattisgarh Government had allotted 1,260 acres for the project, which was initiated during the BJP regime headed by B S Yeddyurappa.

Karnataka has already spent Rs 210 crore for land acquisition.

Shivakumar, who met the Union Power Minister PiyushGoel, said Karnataka was keen on implementing the project due to the chronic power deficit in the State.

However, a formal decision on axing L&T from the project would be discussed at the KPCL board meeting and subsequently approved at the State Cabinet meeting, the minister said.