Nagaland signs Power Purchase Agreement

August 26, 2023 56 Views No Comment

10 MW Bamboo Based Biomass Power Project to be set up at AK Industrial Village Ganesh Nagar

Morung Express news
Kohima | August 26

The Nagaland Power Department has signed a Power Purchase Agreement (PPA) with Hutah Industries for 10 MW Bamboo Based Biomass Power Project at AK Industrial Village Ganesh Nagar, Dimapur today at Hotel Japfü, Kohima.

Nagaland Minister for Power and Parliamentary Affairs, KG Kenye asserted the need to take up power generation projects on a war footing by exploring different sectors to harness energy. He said hydro or solar power energy have been explored in the state as stop gap arrangements, while biomass energy was an emerging sector.

While lamenting that about 90% of the power requirement in the state is being purchased, Kenye informed that the “state is spending more than 400 crores annually for purchase of power to meet the everyday demands of our people which at the same time is a huge loss.”

While hydro projects, as a power generating source is being taken up in Nagaland as stop gap arrangement, the Minister however said that this takes a lot of time and money to generate power. Another sector, he mentioned was solar energy. Biomass energy in the form of the bamboo fired plant is an alternative.

The Minister expressed hope this new deal will give scope for bamboo growers, agencies and youths to work closely with the project and generate income and livelihoods at the same time. “We have been dreaming for days when we can generate our own power and generate revenues to enhance the state’s income,” he said.

Kenye further expressed hope that the project will deliver results unlike past projects which were initiated but did not see any progress. Adding that the “signing the PPE is a license to explore more feasible and financial investments,” Kenye said this is just a beginning.

Aditya Pandit, CEO and CFO of M/s Hutah Industries, while giving a brief highlight of the project, said that the power plant will be a bamboo fired plant, the raw material for which shall be grown within the project area itself. He said that the project is sustainable and has local dimension, as it has leased 1500 acres of land for cultivation of bamboo for the next 25 years.

Pandit said that the project will be completed within 24 months from the date of signing the PPA, for which Rs 910 crores will be invested in the next 3 years. “With a feed-in tariff of 5.06Rs/KWH, utilizing 100% bamboo feedstock, and employing cutting edge STG technology and 45 tonne travelling grate boilers, we are set to generate renewable electricity on a captive resource model,” the CEO added.

He further stated that the project is a collective commitment to harness renewable energy and shape a more sustainable future for the State of Nagaland.

Engineer-in-Chief, Power, in his brief address stated that several PPAs were earlier signed by the Power Department but unfortunately the IPPs were not showing progress in the field. He expressed that the present PPA with M/s Hutah Industries should be a trend setter for a new beginning of successful projects.

The programme was chaired by Er Penrithung Yanthan, Chief Engineer (T&G); Rev Vezopa Rhakho, President, Kohima Baptist Pastor’s Fellowship pronounced the invocation prayer; and the vote of thanks was delivered by Er Kasho Chishi, Addl. Chief Engineer (T&G).