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Power ministry has suggested to both   Karnataka and Tamil Nadu government to set aside their differences and start working to develop hydel projects in the   Cauvery basin, Union  Minister of   State for Power, Jairam Ramesh said .Both the States, buying power from Chattisgarh for Rs. Eight per unit, should form a joint venture with NHPC to generate 1100 MW of power in the basin, Jairam told the media in Chennai.

'Tamil Nadu and Karnataka must set aside their differences and start working to develop hydel project in the Cauvery Basin, by which the States can get power for Rs.2.50 per unit,' he said. While NHPC can hold 50 percent share in the company, the States can have 25 per cent stake each, with a tripartite agreement for power sharing, Jairam said.

When asked about acute power shortage being felt by Tamil Nadu for the last one year, Jairam said that the State would have a short term comfort in another fortnight, when Kayamkulam second unit in Kerala started functioning. This would give 90 MW and also with 2,400 MW power from Neyveli Lignite Corporation, to the National grid, by January middle, the situation would improve.

Admitting that Tamil Nadu was facing special problem on power front, the minister attributed this to 45 per cent generation shortage in Kalpakkam and Kaiga due to uranium shortage and defect in Kayamkulam plant in Kerala, besides shortage in Talcher in Orissa. By June 2009, both Kalpakkam and Kaiga would resume working to its full capacity and in Sept 1000 MW nuclear power plant,would be commissioned in Koodangulam, Jairam said.

Courtsey - PTI