Finding prima facie instances of non- compliance with its norms, ADB's review panel has decided to carry out a compliance review of Tata Power's 4,000-MW ultra mega power project in Gujarat.
Asian Development Bank's (ADB) Compliance Review Committee has said the company failed in consulting most of the affected communities before the project started.
In its report, the panel said there is "prima facie evidence of non-compliance with ADB policies and procedures and prima facie evidence that this noncompliance with ADB policies has led to harm or is likely to lead to future harm".
"Given the evidence of non-compliance... the CRP concludes that the non-compliance is serious enough to warrant a full compliance review," it said.
Meanwhile, Tata Power in a statement said Mundra UMPP strictly abides by stipulated norms for its operations, including environment, community engagement and ecological impact.
"We are happy to cooperate with ADB on any information/ support that may be required while conducting the review," the firm said.
CGPL would always be open to any constructive and transparent process to establish its credentials, it added.
The ADB panel's report follows a complaint filed by Bharat Patel, General Secretary of Machimar Adhikar Sangharsh Sangathan and two other members of the association.
ADB has committed a loan of USD 450 million from its ordinary capital resources without government guarantee to CGPL, of which USD 200 million is syndicated to Export-Import Bank of Korea (KEXIM) through a risk participation agreement.
Mundra project is being implemented by Coastal Gujarat Power Ltd (CGPL).
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