NHPC signs MoU with BSHPC to implement 130.1 MW Dagmara hydropower project in Bihar

New Delhi: NHPC Limited and Bihar State Hydroelectric Power Corporation Limited (BSHPC) have signed a memorandum of understanding (MoU) on Monday for the implementation of the 130.1 MW Dagmara Hydro Power project on the river Kosi in Supaul district in Bihar. The MoU has been signed through video conferencing, said NHPC in a regulatory filing to the stock exchanges.

The MoU has been signed by NHPC Limited's Director (Projects) Biswajit Basu and BSHPC's Managing Director (MD) Alok Kumar in the presence of the Minister of State (Independent Charge) for Power and New & Renewable Energy RK Singh and Government of Bihar's Energy Minister Bijendra Prasad Yadav. On the occasion, senior officials from the Ministry of Power, Bihar government and NHPC Limited were present. 

Dagmara Hydro Power Project in Bihar shall be executed by NHPC on an ownership basis. The government of Bihar shall provide a grant of Rs 700 crore for the project, as per CAPEX requirements, proportionate to equity infusion by NHPC. The government of Bihar shall purchase the entire power to be generated from the project for its complete life at the rate as determined by CERC tariff regulations as applicable at the time of actual Commercial Operation Date (COD) of the project.

The cost of project is presently considered as Rs 2,435.91 crore to be actualised as appraised by the CEA during Detailed Project Report (DPR) clearance.

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Speaking on the occasion, the Power Minister thanked NHPC for their speedy response and cooperation in taking up the project which, he said, reflected their keen spirit towards their aim of development of hydropower. He further said that hydropower is very important in the background of climate change and in the shift from fossil to non-fossil fuel for future power generation.

In his address, Yadav conveyed his gratitude on behalf of the state government to the Ministry of Power and NHPC for taking up the implementation of the Dagmara Project. He further said that the project will bring all-round progress and development in the state.

NHPC CMD AK Singh said, "The Dagmara HE Project will be a landmark project in the power sector scenario of Bihar as far as green power is concerned." He further added, "Apart from generating clean and green power, the execution will boost the socio-economic and infrastructure development in the area and shall also create employment opportunities."          

NHPC Limited is a Miniratna PSU under the Ministry of Power in the field of hydropower. Currently, NHPC has 24 operational power stations with a total installed capacity of 7,071 MW. NHPC has emerged as a premier company in the field of power generation through conventional and non-conventional sources.

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