Dimapur, June 1 (MExN): In 2004 the Nagaland government bought land and readied a contract to start building a 22.92 Mega Watt thermal power station in Dimapur. Unfortunately, the Rs. 105.57 crore project was scrapped when the Planning Commission of India deemed it “highly uneconomical.” This was revealed in a note from the department of Power today.
According to a press release from the power department the project was estimated at Rs. 105.57 crore and funding for it was committed in 2003. The note was appended by Additional Chief Engineer K Miachieo. Contract was awarded to Bharat Heavy Electricals and in 2004 the Ministry of Development of North East Region allocated Rs. 32 crore from the non-lapsable central pool of resources for the project. Besides the one-time assistance “no fund was forthcoming,” the department said. Subsequently, BHEL withdrew from the contract June 13, 2006.
The deputy chairman of the Planning Commission of India then advised the chief minister of Nagaland on May 28, 2007 that the project was “highly uneconomical and advised the state not to pursue for further funding.” The government was then directed to auction off the equipments and remit the proceeds to the government of India. “Shortfall of proceeds vis-à-vis the amount released by DONER to be waived. Land acquired for the project and civil structures to be utilized by the state government,” the note added simply.
