BMC Wind Power Project In Doldrums Amid Encroachments, Loan Hurdles | representative pic
Bhopal (Madhya Pradesh): The Bhopal Municipal Corporation’s (BMC) ambitious 15 MW wind power project in Neemuch district has hit a roadblock due to unresolved land acquisition issues and the failure to secure project funding with a new loan.
The project to reduce BMC’s electricity costs was announced with much fanfare, including a virtual bhoomipujan by the then Chief Minister, Shivraj Singh Chouhan, in April 2023. Slated for completion within 18 months, the project has come to a standstill.
According to BMC officials, the project was to be set up in Hatunia village, Rampura tehsil, on 24 acres of land divided into six patches. While five patches have been allotted, encroachments have delayed possession of the sixth.
The BMC has also struggled to obtain a loan to fund the Rs 75 crore project, with Rs 30 crore to be contributed by the corporation as equity. BMC’s Assistant Engineer Ashish Shrivastava confirmed the land issue, citing encroachments as the primary cause of delay.
‘Will be a loss-making deal,’ says LoP
BMC Leader of Opposition (LoP) Shabista Zaki told the Free Press that the corporation is struggling to get loans due to its poor track record of repayment. That’s why the corporation’s dream wind power project cannot even start.
Zaki added that the project would be a loss-making deal even if it started somehow. However, BMC Chairman Kishan Suryavanshi refuted the LoP’s claims and said the corporation was developing a more profitable alternative plan.
Project breakdown
Once operational, the wind power plant was expected to produce between 2.6 and 3.4 crore units of electricity annually at a rate of Rs 4.24 per unit, considerably lower than the Rs 5.96 per unit BMC currently pays. The contractor was to operate it for 25 years before handing it over to the BMC.
