Escrow for power projects to go

By Our Special Correspondent

TIRUCHI, MAY 20 . The Centre has decided to remove the escrow guarantee system for approving independent power projects (IPPs), Union Power Minister Mr. Rangarajan Kumaramangalam, said today.

Fresh revenue-based guidelines for clearing new IPPs would be formulated within three months by a high-power committee comprising officials from the Union Finance Ministry and the Power Ministry, the Minister told the media here.

In future, approval would be given for IPPs only on the criteria of project viability, the possible returns on investments and the ``track record'' of the State Electricity Boards, he said.

The delay in obtaining escrow guarantee had slowed down the work on lignite-based power project at Jayamkondan promoted as a joint venture by the TIDCO, the Minister said and assured that it would be expedited.

While complimenting the Tiruchi unit of the BHEL on manufacturing boilers matching international standards, he, however, said the Hardwar and Bhopal units which produced generator sets required to be ``fine-tuned.''

The Power Ministry's proposal to hike the lignite mining royalty given to the Tamil Nadu Government by the Neyveli Lignite Corporation from the present Rs. 2.50 per tonne to Rs. 50 per tonne was awaiting Cabinet approval, Mr. Kumaramangalam said.

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