Patna: Project cost of the 1,320 MW thermal power project at Buxar in Bihar constructed by Satluz Jal Vidyut Nigam (SJVN) has gone up by about Rs 3,591 crore mainly due to payment for land in accordance with the new Land Acquisition Act, SJVN officials today said.
Due to the cost escalation, power would now be sold at a rate of Rs 3.47 per unit, they said.
Earlier estimated cost of the Buxar thermal power project’s two units of 660 MW each was Rs 6,000 crore, which has increased to Rs 9,591 crore now, R P Singh, SJVN chairman and managing director told reporters here.
The rate of electricity was earlier fixed at Rs 2.53 per unit which would now be hiked to Rs 3.47 per unit, he said.
A Memorandum of Understanding (MOU) for setting the green field 1,320 MW supercritical technology thermal power project at Chausa village in Buxar district was signed in January 2013.
The SJVN would sell 85 per cent out of the total power generation of 1,320 MW to Bihar to perk up power availability of the electricity-deficit state.
The project, coming up at Chausa, about 15 km from Buxar town, would require 1,048 acre of land.