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Guj govt seeks NOC to revive power project

In yet another endeavour to revive the long-delayed 1,500 Mw Surat power project, the Gujarat government has asked the Union power ministry to direct the Neyveli Lignite Corporation (NLC) to issue it a no objection certificate. 
Neyveli Lignite and the Gujarat government had signed a memorandum of understanding in July 2006 to set up this lignite-based power project at an investment Rs7,500 crore. Work on the project was slated to start in 2007.
According to informed sources, the project is stuck because the Gujarat government had expressed its desire to get a major chunk of power from the project for the state, while the Centre wanted the allocation as per the Gadgil formula, a method of transferring resources from Centre to states on the basis of income and population.
If this formula is adopted, Gujarat would not receive more than 50% of the power. Gujarat Power Corporation Limited is a partner in the project. The government wants to use lignite reserve available in the state so that full capacity could be dedicated to the state power grid.
 

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