CHANDIGARH: N.S. Vasant, former chairman of the Punjab State Electricity Board, has alleged the Center has signed memoranda of understanding with foreign companies in the power sector at inflated cost for extraneous considerations, ‘The Center has signed seven memoranda of understanding involving investment of Rs, 24,000 crore MW for the generation of 5,000 MW of electricity in the thermal power sector, ‘Talking to media persons here last week, he said the cost per unit negotiated by the Center was from Rs. 4,5 croretoRs.5 crore per MW as against the indigenous cost of about Rs, 2 crore per MW. Moreover, the Center had allowed about 35% return on the equity to these companies. Vasant, who is a member of the Delhi based national working group on power sector, said\damage had been done by signing those MoUs as in future, and this would be treated as the minimum cost.
Article extracted from this publication >> November 4, 1994
