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August 5, 2013

Reliance Power's 4000 MW Tilaiya UMPP need to receive PSU status to get exemption for compensatory forestation requirement...

 

Reliance Power Tilaiya UMPP

Reliance Power Limited's (RPower) 4,000 MW Tilaiya Ultra Mega Power Plant (UMPP) is required to receive a Public Sector Undertaking (PSU) status from the Central Government in order to be exempted by the Jharkhand Government from providing non-forest land in return for diverting forest land for the proposed mega power project.

 

As per the rules of diversion of forest land, the projects of state run companies are exempted from providing compensation in cases where forest land is diverted for the projects.

The Tilaiya Ultra Mega Power Project was an Special Purpose Vehicle (SPV) set up by the state run Power Finance Corporation (PFC) which is the nodal agency for Ultra Mega Power Projects in the country.

Later on the project was awarded to Reliance Power Limited and the SPV was transferred to it.

However, as per the Jharkhand Government, the decision is yet to be made by the Central Government on whether the Tilaiya plant will be considered a private company plant or a government plant. Based on that, they will or will not compensate for the land acquired for the plant.

 


More literature on this topic...

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/jharkhand-awaits-centre-decision-on-psu-status-for-rpower-plant/articleshow/21597560.cms


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