Important decisions In Cabinet Meeting

Chief Minister Smt. Vasundhara Raje chaired the meeting of State Cabinet at the Chief Minister Office on Tuesday during which in-principle approval was given for disinvestment of eight power production units of Kali Sindh and Chhabara Thermal Power Plants. This disinvestment plan aimed at supporting the power production companies overcome losses as well as ensure power availability to the consumers at reasonable rates.

While briefing the media persons, Parliamentary Affairs Minister Shri Rajendra Rathore said that two operational power production units of 600MW capacity each would be disinvested at Kali Sindh Thermal Power Plant. Also, four operational units of 250MW capacity each and two other under-construction units of 660MW capacity each would be disinvested at Chhabara Thermal Power Plant, he said. The Cabinet gave in-principle approval for disinvesting these units through competitive open bidding system. A consultant would be appointed to execute this process, he said. Two new units of 660MW capacity each would be installed at Kali Sindh plant in the private sector, he added.

Shri Rathore said that two operational units at Kali Sindh Power Plant would be disinvested through Tariff Based Bidding process. These units caused losses worth 524 crore rupees during year 2014-15 and additional losses worth 514 crore rupees were estimated to incur in the current year. Low plant availability factor and Station Heat Rate standards were the main reasons to cause these losses, he said.

The Minister said that this disinvestment would put a stop to this deficit as well as ensure availability of power to the consumers at reasonable rates. This could reduce capital loans worth 7,434 crore rupees on the state government and provide capital gains amounting to 721 crore rupees, he said. Similarly, disinvestment of commissioning and operations of the under-construction units through Tarrif Based Bidding would result in overcoming losses and availability of cheaper power, he said.

Shri Rathore said a similar approval was given for disinvestment of four operational units of 250MW capacity each of Chhabara Thermal Power Plant and two under-construction units of 660MW capacity each through Direct Negotiation Route with National Thermal Power Corporation (NTPC) or Competitive Open Bidding Process. He said that the operational units of Chhabara Power Plant caused losses amounting to 499 crore rupees in the year 2014-15 and estimated deficit for the current year could be about 633 crore rupees. Disinvestment of these units would earn capital worth 1,284 crore rupees alongwith saving the state government from payment of share capital worth 852 crore rupees and loans worth 3,189 crore rupees, he added.

The Parliamentary Affairs Minister said that interests of all officers and employees would be protected during this disinvestment process and none would be separated from the services.
The Minister said that the Cabinet also reviewed Mukhyamantri Jal Swavlamban Abhiyan. As per this campaign, total 1,74,354 watershed development works had been identified in 295 blocks across the state. Out of these, 22,131 works had already started. Works of 12 crores were initiated with public funding and the Indian Army, police and media organizations had funded watershed works costing 165 lakh rupees, he said.

Jaipur, February 23, 2016