Guwahati: Aiming to meet an adequate supply of power to households and industries in the coming days, the Assam government has decided to buy at least 20 percent stakes in the upcoming Ghatampur (Kanpur) 1980 megawatt (MW) supercritical thermal power station of Uttar Pradesh (UP).

It will be the first instance where the state government would be investing in a power plant outside the state.

On Monday, following a cabinet meeting in Dibrugarh, Assam chief minister Himanta Biswa Sarma informed that already the UP government has responded to a letter from him to make Assam, a shareholder in the project and to supply 400 MW of power to the north-eastern state.

Citing the reasons behind the move, Sarma said, “From some 1900MW of daily consumption in 2021, the state’s daily consumption of power has gone up to 2400MW in 2022. With no more possibility of hydel and thermal power production in the state, we have been buying power from the grids at a rate of Rs 12 per unit. However, we supply the same power at Rs 4 per unit to the households leading to a great loss. So we have been looking for an opportunity to invest in power plants outside the state to meet with our power demands.”

He added, “Already UP government has agreed to allow us to buy at least 20 percent shares of the 49 percent of its own stake in Ghatampur (Kanpur) thermal power station. The Centre has 51 percent shares of the plant. Besides, they have also agreed to supply 400MW of power to the state once the project gets completed.”

Sarma said that he would fly to UP on Tuesday to finalise the deal also.

“We have estimated that Assam will need an investment of Rs 1000 Crore for the same and today the state cabinet has approved it,” he informed further.

The Neyveli Uttar Pradesh Ltd (NUPPL), a joint venture of Neyveli Lignite Corporation of India and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL), has been setting up the coal-fired supercritical power plant of 1980 MW consisting of three units of 660 MW each at Ghatampur near Kanpur.

 The plant broke ground in 2016 and was likely to be completed next year.

Besides the UP government, the state government has also requested Coal India to allow it to become a partner in one of its plants.

Hopefully, a deal with Coal India will also become a reality in future, Sarma said.