The government has granted exemption to ultra mega power projects from a key provision of the Forests Act 1980 that requires developers to identify non-forest land for compensatory afforestation.
The decision will benefit companies like Reliance Power that is implementing 3 ultra mega power projects and developers of future such projects.
The Cabinet Committee on Infrastructure has approved 'central government' status for ultra mega power projects for the purpose of forestland acquisition.
Unlike private projects, central government projects are neither required to identify non-forest land for compensatory afforestation nor pay any money for the purpose. The developers of ultra mega power projects however will be asked to pay for the afforestation while the host state government will identify the non forestland.
Compensatory afforestation rule is one of the most important conditions stipulated by the central government under the forest conservation act while diverting forestland and requires companies to identify equal area of non-forest land in the same state.
"We had approached the Cabinet Committee on Infrastructure for tweaking the compensatory afforestation norms for the Tilaiya ultra mega power project in Jharkhand. Since approved, the change would benefit both existing and future ultra mega power projects," a senior power ministry official said.
Reliance Power bagged the 3,960 mw ultra mega power project at Tilaiya in 2009 and planned to commission the first unit by May 2015. The company has not been able to start work, as the state government has not handed over land to the company. The company has received final forest clearance for 1220 acres of forest land but is still awaiting final handover from state government.
Nearly 80% of the land required for the project and the attached coal mines falls under forest area.
Reliance Power had ordered the main plant equipment for the Tilaiya project on Shanghai Electric, China but is still in discussions with domestic and international banks for financial closure.
The proposal would also benefit developers of future ultra mega power projects. The government has called bids for two such projects at Bedhabahal in Orissa and Cheyyur in Tamil Nadu.
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