Rs 60 million service charges for 10 years: Nandipur power plant to be given to Malaysian company

The government has decided to hand over the expensive state-owned Nandipur power plant to Malaysian company for 10 years, which would not only take care of the plant, but would also be responsible for power production, for which the government would pay Rs 60 million per month to the company. According to officials of the Ministry of Water and Power, the government had decided to give Nandipur power plant with power generation capacity of 425 MW to Malaysian company TNB for 10 years.
The government company Northern Power Generation would pay the Malaysian company monthly Rs 60 million as service charges. Northern Power Generation Company would have no role in operation of Nandipur power pant during this period. Malaysian Company could operate the plant in a better way than civil servants, as the experience of operating power plants under the government control did not work in the past.
Nandipur power plant cost surged to Rs 84 billion from Rs 22 billion and power production from the plant through gas would cost Rs 9 per unit, furnace oil Rs 18, whereas diesel would cost Rs 27 per unit. According to sources, the decision of giving the plant to Malaysian company was taken after a formal bidding and final approval in this regard would be given in Northern Power Generation Company's Board meeting.-PR