At a time when the UPA government is desperately looking for investments to bring the economy back on the growth trajectory, the same government is sitting on approvals for as many as 70 power projects (both in public as well as private sector) entailing a total estimated investment of `4,43,458.39 crore.
Most of the power projects, according to the Ministry of Power (MoP), are getting delayed for want of different clearances from the Ministry of Environment and Forests (MoEF) or allocation of mines and fuel linkages.
“Necessary clearance, be it environment or forest or costal, should be granted before the project takes off as is the practice in developed nations. Timely approvals prevent project delays and cost overruns,” a sector expert said requesting anonymity.
The MoP note lists six projects worth `39,009 crore (see map), which include Sagar Super Thermal Project (1980 MW) to be built by Universal Crescent (P) Ltd in West Bengal. It is yet to get environmental as well as Costal Regulation Zone (CRZ) clearances. MoEF in its response said, “In view of the observation of the Expert Appraisal Committee (Thermal) that the site is not suitable for a power plant, grant of CRZ clearance has not been considered.” The MoP has, however, asked MoEF to expedite the matter.
Similarly, the Raj West 1080 (8x135) MW plant to come up in Barmer district of Rajasthan is also delayed as the mining linkages are yet to be granted. Here, all eight units have been commissioned. But the private developer is wwaiting fuel linkages besides green clearances.
Similarly, SKS Power and Generation Chhattisgarh, a 1200MW (4x300) coal-based power plant at Raigarh district in Chhattisgarh, is getting delayed as the state government is yet to provide the necessary licences for coal mining.
“The issue has been taken up by MoP with the Chhattisgarh government on 26.09.2013 and 18.10.2013. Comments from the state government are awaited,” the MoP said in the note to CCI. MoP has asked the CCI to take up the matter with the Chhattisgarh government.
The 1050 MW (2x525) plant being commissioned by Hinduja National Power Corporation at Visakhapatnam is also stuck for want of CRZ clearance. MoP has asked CCI to direct MoEF to grant the CRZ clearance to the project, which is likely to be commissioned next year, at the earliest.
The Machhakata Coal Project in Odisha being developed jointly by the Maharashtra State Power Generation Company and the Gujarat State Electricity Board is facing a series of issues, including land acquisition.
The MoP has asked the Odisha government to facilitate land acquisition, approval for mining lease, forest and environment clearance. The ministry has also urged the state government to quell the resistance by local residents.
The 1000 MW coal-based power plant, Meenakshi Energy (P) Ltd, in Nellore district of Andhra Pradesh is also awaiting necessary clearances. Phase 1 of the project is operational, while the 700 MW phase II is yet to be commissioned.
The project got environmental clearance in July which has now expired; the developers are waiting for its renewal. The MoP has asked CCI to direct MoEF to grant an extension to the project immediately.
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