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Three rental power plants to miss deadline for their commissioning

FE Report | Sunday, 15 June 2008


At least three out of six rental power plants are to miss the official deadline for commissioning of their units mainly because of delay in the allocation of land by the authorities concerned, sources said.

They are: Kumargaon, Fenchuganj and Shahjibazar rental power projects, each having generation capacity of 50 megawatt (MW), the sources said, adding that among them, Kumargaon plan is expected to go into production shortly.

On January 15, the Power Development Board (PDB) signed contracts with six rental power units, having a total power generation capacity of 220MW.

As per the contracts, the rental plants are to go into operation within 120 days from the day of signing of the agreement.

Project insiders said the PDB, according to the agreements, was required also to allocate suitable land for installation of such rental power units within 30 days from the date of signing the contracts.

They said the entrepreneur took an additional 60 days to prepare the allocated land for setting up the Kumargaon power unit. It required piling deep into 60 feet of earth at more than 306 spots.

The PDB allocated a fresh land for setting up the Shahjibazar project after the entrepreneur refused to accept the initial allocated slanted and hilly land from the PDB, sources said.

Moreover, the entrepreneur had to spend more than 70 days for developing the low land with earth filling at their own cost, they mentioned.

On the other hand, the authorities first allocated a 15-feet low land for the Fenchuganj rental power unit.

Later, the PDB gave a fresh allocation of land to the entrepreneur after it failed to complete the earth filling within the set timeframe, the sources said, adding that the entrepreneur finally got the land on April 20.

Moreover, the entrepreneur had to carry out a major piling works there until June 10 to develop the land, they added.

Among other projects, the Bogra 20mw rental power was to go into production by the deadline, but the concerned entrepreneur failed to do it, as the imported equipment remained idle in Singapore due to some technical problems.

Another project - Bhola 30MW rental power unit - is also running behind the schedule due to some other technical problems, the project insiders said adding that the unit is expected to go into production by August.

Since the entrepreneur requires paying significant fine for their delay in launching the units, the authorities should review the deadline for launching the power generation, taking such delay in the allocation of land by the PDB.