A senior state power ministry official said, the Centre has rejected the state’s proposal to seek funds for nearly Rs 2,500 crore thermal power projects from Japan international Cooperation Agency (JICA), while showing concern over the “alarming state of West Bengal’s debt burden”.

The official said, “The project has now been kept in abeyance as the Centre feels the states debt burden has reached an alarming position and denied to take up the loan proposal with Japan international Cooperation Agency”. He said, “The sixth unit of Bakreshwar Thermal Power Project estimated at Rs. 3,300 crore was scheduled to be built with a soft loan from the from Japan international Cooperation Agency”.

The funding will be done by the Japanese government through erstwhile Japanese Bank for International Cooperation now JICA, for all other units of Bakreshwar Thermal Power Station. The project was scheduled to be implemented by the WBPDCL (West Bengal Power Development Corporation), which is the states only power generating company in West Bengal.

Krishna Gupta, WBPDCL managing director said, “I am out of station for last two months, so I cannot comment”. Currently the state government may not be in a position to access JICA funds any more for state projects unless it improves its revenue or restructure its interest payment schedule, as the state outstanding debt burden is nearing Rs 2 lakh crore mark.