Imphal, October 18: Following the stand of the National Hydro Electric Power Corporation that the Loktak Downstream Project is not economically viable, the State Govt has evinced an interest in taking up the project as a State sector and if the Union Ministry of Power gives the nod, the State Government will take up the same.

Disclosing this, a reliable source said that the State Govt has already made its intention clear to the Centre.

Towards this end the State Govt has worked out a detailed report and pegged the estimated cost of the project at Rs 670 crores, said the source adding that power can be made available at the cost of Rs 2.08 per unit according to a labellised tariff for 30 years.

The State Government has also approached the Power Finance Corporation to fork out 50 percent of the estimated cost as loan adding that the Ministry of Finance too has been requested to fork out the required fund as Special Reconstruction Plan in phases over five years.

Plans are also on to revive the Manipur State Power Development Corporation with the Chief Secretary as the Chairman, said the source adding that once this is done, then the project may be entrusted to the Corporation.

However since the State does not have the requisite technical experts, the services of the NHPC may be roped in by paying them 15 percent of the estimated cost as agency charge, said the source.

The plan to sell the power generated from this project at Rs 2.08 per unit will be over come by the free 12 percent of power earmarked for the State, said the source adding that if the State Govt takes up the project, the cost of security and road maintenance will not be reflected in the cost of the project.

In 1999, the Loktak Downstream Project was included in the Prime Minister's package but the work on the project was stalled indefinitely, as the Chief Engineer of NHPC, Sher Singh was gunned down by unidentified gunmen.

Due to the long delay, the cost of the project shot up and the unit cost of power to be generated by this project was pegged at Rs 7.This led the NHPC to take the stand that the project was economically not viable.

The State Government is working over time to convince the Prime Minister to lay the foundation stone of the project if he honours the invitation to visit Manipur on November 23.If the Union Power Ministry agrees with the proposal of the State Government to hand over the project to the State, then the Prime Minister is most likely to agree to lay the foundation stone, said the source.

However the Power Ministry is yet to give a final answer.

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