THERE is growing opposition to the disinvestment of NEEPCO, the North Eastern Electric Power Corporation (NEEPCO) from within and outside the organisation. The overwhelming view is that the decision will adversely hit the development of power sector in the region. On their part, the NEEPCO management has asked the Central government to reconsider the move.

The Disinvestment Commission has recommended that them government off load its equity in NEEPO after examining the company’s performance for the year 2002-2003. There have been several hiccups but these were not taken on board, it is felt. Hence the expectation that “ in the interest of development of power sector in the North-East, the proposal would be withdrawn and NEEPCO would be allowed to develop as a fully government owned enterprise.” NEEPCO is the only Central Government enterprise exclusively meant for developing hydro and thermal power in the North East region. It has so far achieved 1105 MW installed capacity. The North East has a vast potential of more than 50,000 MW hydro and 10,000 MW of thermal power, which is yet to be harnessed.

NEEPCO has planned to develop 4,000 MW of power by the end of the 11th Five Year Plan. In the first six months of the current financial year, the Corporation attained 100 per cent machine availability. The generation in September was 510 MU; the earlier best was 298 MU in June last year. All three units of the 405 MW Ranganadi power projects have been synchronized during the period from January to September this year. NEEPCO has been assigned the task of preparation of pre-feasibility reports of 18 new projects. Already six reports have been submitted to the Central Electricity Authority under the Prime Minister’s 50,000 MW initiative.

As of now the company has entered the profit phase it earned a net profit of Rs. 50 crore in the first half of the current fiscal. It hopes to end the year with a profit of about Rs, 100 crore. Recently, NEEPCO saved some money by swapping more than Rs 5 00 crore of high interest bearing loan for interest loans to reduce the interest and loan burden  Despite the best efforts of the Government private investment is not forthcoming to the power sector. This means continued role for NEEPCO in ‘electrifying’ the houses across the region.

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