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The Balimela Power Project forms the second stage of development of Machkund - Sileru River, the first stage being the Machkund Project. The water released from Machkund Power House and the inflow from intermediate catchment between Machkund-Balimela Dam are impounded by a Earth-cum-Rock fill at Chitrakonda known as Balimela Dam. Balimela Dam is a joint project of Orissa and Andhra Pradesh Governments and the inflow into Balimela Reservoir is shared between the two States on 50:50 basis. The original estimates framed in the year 1962 for the purpose of agreement between the two States of Orissa and Andhra Pradesh was for 24 Crore rupees. Subsequently, this estimate was revised in the year 1972 for 46.30 Crore rupees. Again the estimate was revised in the year 1975 for 52.14 Crore rupees. The revision of the estimate at different phases of investigation and construction of the Project was necessitated for different reasons, which include the rising costs of different spares, consumables and wages of different categories of Workmen and Employees, decrease in the efficiency of the machineries, due to longer use and also idling for non-availability of spares, increase in the distance to borrow areas and height of the Dam from year to year etc.

The requisites Civil and Electrical works for the Balimela Reservoir for Power Generation in Balimela Power House constitutes the Balimela Power Project. Thus, while the Balimela Dam Project has been a joint project of Orissa and Andhra Pradesh, the BALIMELA POWER PROJECT is entirely of ORISSA STATE.

Project Cost

The estimated cost of the Electrical Portion of the power project as revised in 1975 was Rs.17.0956 Crores and that the Civil portion of the power project was Rs.20.7064 Crores. The bulk of the estimated cost for electrical works represented the value of power plant equipments for the six Generating Units including the Power House Cranes, Step-up Transformers, Switchgears etc. which were supplied by M/s. Energomachexport of U.S.S.R. under a contract drawn-up in November,1964. The entire power project has been subsequently transferred to the control of ORISSA STATE ELECTRICITY BOARD from 1.4.1979 and after reforms and re-organisation this has come under ORISSA HYDRO POWER CORPORATION LIMITED, BHUBANESWAR.

The erection work of all the units were originally contemplated to be completed by 1971-72. Erection work however was started in 1970-71, due to delay in completion of Civil works. Subsequent to starting of the work, there has been further rise in the cost of indigenous equipments, erection materials and wages. The prices of oils & lubricants have increased more than three times since 1971.

The estimated cost of power supplied to Orissa Power Grid from this Power Station has been at 7.58 paise per Unit, basing on the capital cost of the 50.66 Crores for Balimela Joint Dam Project, 37.79 Crores for Balimela Power Project - Civil and Electrical works. The firm power of this Station is 135 M.W., corresponding to an estimated annual generation of 1183 Million Units. Considering 0.5 percent towards the auxiliary consumption (say 6 M.U.) in the power station itself, the net energy available for sale, out of this power station is 1177 M.U. This is based on the normal monsoon conditions. However, there are variation in the actual generation during the operation period from year to year, depending mainly on the Reservoir condition and monsoon behavior in the catchment areas of Balimela and Jalaput Reservoirs. Actual performances in the past years is indicated in the annexure. The revised sale cost per Unit has been revised to Rs.0.49 / Unit from 1.4.97 under ORISSA HYDRO POWER CORPORATION LIMITED, ORISSA.