Power ministry to look into upfront payment issues 

Shillong, Aug 25 : The Union Power Ministry would look into the issue of 'upfront payment' being demanded by several state governments from public sector units to allot projects in the North eastern states. 

The phenomenon has left government-owned giant power producers like the North East Electric Power Coropration (NEEPCO), National Thermal Power Corporation Limited (NTPC) and others in the lurch as these companies have been barred to pay such amount under the Central Vigilance Commission (CVC) guidelines. 

''We are aware of the issue and would discuss the matter and come up with solutions so that public sector companies were not left behind in their competitive bids,'' Union Minister of State for Power, Bharatsinh Solanki told reporters. 

In fact, NEEPCO has been demanding from the Centre that the CVC guidelines be eased so as to facilitate the corporation to be on equal footing with private sector companies. 

Most of the state governments are seeking upfront money from power companies ranging anything between three to five lakh per megawatt. But strangely, NEEPCO has lost several projects due to this new phenomenon despite negotations with state governments to exclude it from paying such amount. 

Recently, the Arunachal Pradesh government cancelled two contracts signed with NTPC after the state-owned power company refused to pay the upfront money of Rs 5 lakh per megawatt as demanded by the state government. 

Mr Solanki, hwoever, said entry of private companies to develop the sector was a ''healthy sign'' as competition would help the sector, but public sector units would equally be encouraged by the ministry to get projects. 

He said the Centre, in association with the state governments, and NEEPCO is coming up in a big way to tap the hydel resources of the northeast terming the region as a immense resorviour of ''green energy.'' On India's growing demand for power, Mr Solanki said, the entire Himalayan belt to the northeast has a key role to play if the country has to be self-sufficient in power generation. The sector, he added, has the potential of generating one lakh new job opportunities during the coming years.