Uttarakhand defends 1,320 MW thermal power procurement deal

The Uttarakhand government has defended its decision to procure 1,320 MW of thermal power through a 25-year agreement, asserting the move ensures long-term energy security at competitive rates. BJP State President Mahendra Bhatt stated that the coal-based power will be secured at Rs 5.74 per unit, contrasting this with a 2016 gas power agreement that reportedly cost significantly more per unit. Bhatt noted that the project will not be located within Uttarakhand, meaning the state will not face land issues or pollution burdens.

Addressing political criticism, Principal Secretary (Energy) R Meenakshi Sundaram clarified that the procurement process follows all prescribed rules, including competitive bidding and approval from the Uttarakhand Electricity Regulatory Commission (UERC). Sundaram rejected allegations of favoritism toward specific companies, noting that five companies were eligible during the initial stages and that the final selection will be determined by the total tariff quoted through the bidding process. The government emphasized that thermal power is necessary to provide a stable base-load supply to complement fluctuating hydropower and solar energy.