The controversial Reliance Power-owned Sasan Power Limited (SPL) in Madhya Pradesh (MP) may see more trouble as they may have to provide 1384.96 hectare of non-forest land, for which it was granted exemption following a certificate of non-availability of land issued by the then chief secretary of the state in 2009.
SPL will have to provide land as per the new Union ministry of environment and forest (MoEF) guidelines, said a senior officer in the state forest department wishing anonymity. "We have not received any official communication in this matter," he said.
State forest department has shot off a letter to MoEF seeking status of the guidelines. The ministry had promised for new guidelines after being pulled up by the CAG for extending "undue favours" to SPL. The letter was sent by the land records section of the forest department recently, said sources.
When contacted principal chief conservator of forest (PCCF) Anil Oberoi said that he is in Delhi and will discuss the matter with higher-ups in MoEF.
SPL, a special purpose vehicle created for development of Sasan Ultra Mega Power Project, was a wholly owned subsidiary of Power Finance Corporation (PFC). In August 2007 it was transferred to Reliance Power Limited.
In its recent report on Compensatory Afforestation in India, CAG said that SPL, according to guidelines and clarifications for diversion of forest lands for non-forest purpose under the Forest (Conservation) Act, 1980, had to provide equivalent area of 1384.96 hectare of non-forest land for the compensatory afforestation.
But, the former chief secretary had issued a certificate of non-availability of non-forest land in Sidhi district instead of a certificate of non-availability of non-forest land for the entire state.
"Based on this ineligible certificate issued by the chief secretary, the ministry 'exempted' Sasan Power Limited from providing non-forest land of 1384.96 hectare in case of Ultra Mega Power Project and for the coal mining project in violation of the Forest (Conservation) Act, 1980," reads the CAG report, which highlighted "deficiencies" in permitting diversion of forest land in the state.
"Not only did the ministry not exercise due diligence in ensuring compliance with conditions it also inexplicably overlooked the deficiencies in the certificate pointed out by a subordinate authority in the ministry while granting exemption in the instant case," CAG noted.
CAG mentioned, "The MoEF had insisted for compensatory afforestation over the non-forest land in latest project of the same company in nearby location in Madhya Pradesh, which clearly illustrates that in earlier two cases undue favour was extended to M/s Sasan Power Limited."
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