Signalling reforms in power generation, the Delhi government today decided to allow private companies to set up a 1,000 MW power plant in Bawana. The new plant in Bawana is expected to be ready before the Commonwealth Games in 2010, and the Cabinet today decided to appoint a consultant — through global tendering process — to assist the government in the bidding process. The government will also provide land for setting up the plant, at suitable rates.

After the Cabinet approved that the plant be developed by private players, Chief Minister Sheila Dikshit told Newsline: ‘‘We are looking at the future, where we need efficient and dedicated power plants for Delhi. Right now, the city depends heavily on the Northern Grid.’’ The existing power generating units in Indraprastha, Rajghat and Pragati power plant will, however, remain under government-control along with the transmission sector. Delhi produces just 17 per cent of the total demand and depends on the Northern Grid for the rest. Delhi’s own generating units Pragati (330 MW), Rajghat (135 MW), Indraprastha (160 MW) and Gas Turbine (175 MW) together manage to generate only 400-500 MW. Badarpur Thermal Power Plant (Haryana) contributes about 630 MW.

The new power generation unit, which will run on natural gas, is likely to improve Delhi’s self-sufficiency in power. National watchdog, the Central Electricity Authority chose the natural gas-mode as “it is cheap and eco-friendly”. It weighed seven alternatives before zeroing in on the natural gas supply through the HBJ Pipeline.

The project will cost about Rs 3,560 crore and will not have any government stake. The cabinet chose the ‘‘private firms route’’ over two other options — joint ventures and government control — since both Finance and Planning Departments of Delhi government suggested that it should not put additional burden on the state exchequer by investing in generation of power.