Tuivai Power Project in Mizoram Cleared

By Himani Kaushik

New Delhi, May 14 : Initiating public-private partnership (PPP) in the hydro power sector, the government has approved setting up of the Tuivai Hydro Electric project in Mizoram.

To be set up under the build, own, operate and transfer (BOOT) model, the project will have an installed capacity of 210 mw and entail an investment of R1,750.60 crore.

"The PPP cell of the finance ministry has approved the project and has directed the government of Mizoram to start the initial bidding process and shortlist interested companies," said a government official.

The government has approved the project for the viability gap funding facility and 30% of the total cost of the project or R510 crore will come from the Centre.

Mizoram faces huge power shortage. In 2009-10, it purchased 97% of its total electricity supple from central generating sources. In order to meet current shortfall and future requirements in energy, this project is seen as a major power generation project for the state.

The project will cost R17.50 crore per mw and will have a concession period of 35 years including five years of construction period.

The bidding for the project will be completed in two stages.

The government has prescribed the highest premium and lowest grant as a pre-determined requirement for the bidders. This is also the first PPP project of Northeast India.