The Hindu Business Line : NTPC, Reliance Energy investing in rural electrification projects

THE biggies of the power sector are warming up to the idea of investing in the hinterlands. State-owned NTPC Ltd and Reliance Energy Ltd are setting up electrification projects in the rural parts of the country, an area hitherto untouched by the bigger players.

NTPC Ltd is taking up Distributed Generation (DG) projects at remote un-electrified villages with the objective of demonstrating a sustainable business model for such projects.

Reliance Energy Ltd too has entered into an agreement with the Uttar Pradesh Government to electrify over 600 villages near Agra, Aligarh, Hathras and Mathura. REL plans to work for 100 per cent electrification of these villages, along with construction of seven 33 kV substations in the four districts, by March 2007, Government officials said.

According to company officials, NTPC plans to take up rural electrification projects in the vicinity of its existing power stations through participation of the local community and use of locally available renewable energy sources. For instance, NTPC is in the process of identifying un-electrified villages in Angul in Orissa, in the vicinity of its thermal power plant in Talcher. It is proposed to initially shortlist about four to five villages for detailed feasibility and preparation of DPR, following which actual work would begin on the ground.

NTPC is encouraging the local community to get involved in the projects and is also carrying out their training and capacity-building to enable them to independently manage the plant and look after its operations, maintenance and revenue collection for running it on a techno-commercially viable manner.

Two pilot Distributed Generation projects, one at a village in Korba in Chhattisgarh and another in a village in Sonbhadra in UP, have already been commissioned.

The project in village Jemara in Korba is using biomass (woddy) for electrifying 100 households while the project in Jaraha-Chetwa in Sonbhadra uses Solar Photovoltaic technology (SPV) to electrify about 200 households. Another 14 DG projects are in the various stages of DPR preparation, officials said.