GVK seeks MoEF nod to use HSD for gas-based power project…

 

With gas supplies from KG-Basin coming to a standstill, Gautami Power Ltd, a GVK group company has sought permit from the Ministry of Environment and Forests (MoEF) to use High Speed Diesel (HSD) instead of natural gas at its plant in East Godavari district of Andhra Pradesh.

This comes after a committee under the MoEF opined that usage of HSD for power generation will not be as eco-friendly as natural gas and directed the company to obtain views of Ministries of Power, Petroleum and Natural Gas on the issue.

"The Committee deliberated on the proposal and noted that the quantity of HSD to be utilised for power generation is quite substantial. The usage of HSD in such quantities will not be as eco-friendly as natural gas.

The Committee therefore desired that the PP shall obtain the views/comments of Ministry of Power and Ministry of Petroleum & Natural Gas on the use of HSD for the project before taking a decision," the Expert Appraisal Committee (EAC) under the MoEf said in its meeting last month.

It was also noted that Government is subsidising HSD for certain specific-end users only such as for transportation, the EAC further said. The gas-based power project has natural gas allocation of 1.96 MMSCMD by MoPNG from KG Basin for operating the plant on full capacity.

As the gas supplies for the project have come down due to reduction in gas production in the KG D6 fields, it is requested to amend the environment clearance for using HSD (green diesel) with sulphur content not exceeding 0.05 percent as an alternate fuel instead of emergency fuel. The plant operated on full generation for the years 2009, 2010 and 2011 using gas supplied from KG D6 gas fields. However, since October 2011, the total gas supply from KG D6 has been reducing from the original level of 60 MMSCMD to less than 15 MMSCMD and supply to power sector was stopped since March 2013.

As per the existing policy of the Government, power generation using indigenously sourced HSD is allowed.

The Ministry of Power and MoPNG has already accorded NOC for HSD as fuel for GVK's Jegurupadu Phase II Power Project (220 MW) in East Godavari district last year. Many gas-based power plants including that of GVK's are sitting idle due to non-availability of gas.

GVK Power stock price

On January 15, 2014, GVK Power & Infrastructure closed at Rs 10.20, down Rs 0.23, or 2.21 percent. The 52-week high of the share was Rs 15.36 and the 52-week low was Rs 5.52. The latest book value of the company is Rs 15.84 per share. At current value, the price-to-book value of the company was 0.64.

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MoEF gets deadline to give clearance to coal blocks…

 

In an move to speed up clearances for coal blocks, the Ministry of Environment and Forests (MoEF) have been given between four to six weeks to expedite Stage 1 and 2 forest and environment clearances for 42 coal blocks. On behalf of the government, the Attorney General of India today informed the court that it will take about 4-6 weeks to either expedite the process of clearances or to go for its allocation.

There are 32 coal blocks which are allocated to the private companies which are pending because they have only got Stage 1 clearances; about 10 coal blocks allotted to private companies again have got Stage 2 environment or forest clearances.

The government has promised that it will either cancel it or expedite the process of the clearances because of which these coal mines are not functional.

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Coal India gets environment ministry nod for 23 projects...

 

Coal India (CIL) has received approval from the Ministry of Environment and Forests for 23 projects after intervention by the Cabinet Committee on Investment (CCI).

"As on December 30, 2013, out of the 20 projects pending with MoEF (Ministry of Environment and Forests) for EC (environment clearance), 16 proposals have been granted EC," the Coal Ministry said in a note highlighting the action-taken report on decisions by the CCI.

Of the four projects awaiting environment approval, three belong to Coal India unit Western Coalfields Ltd and one to South Eastern Coalfields Ltd, another unit.

In addition, two of five projects have been granted stage-II forest clearance (FC), and five of 15 proposals have been given stage-I FC.

Of the projects awaiting stage-II FC, two belong to Central Coalfields Ltd and one to South Eastern Coalfields.

Two projects of Central Coalfields, four of South Eastern Coalfields and four of Central Mine Planning & Design Institute Ltd, Coal India's consultancy firm, have yet to get stage-I FC.

The government set up the CCI to expedite the decision making process for clearance of projects in the infrastructure sector.

The Coal Ministry said four meetings, including one on December 11, have been held among officials of the two ministries and Coal India to review and expedite clearances.

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Government eases environment clearance norms for coal mines...

 

The government has eased environmental clearance norms for expanding coal mines, which will help state-run Coal India boost output by a record 30-40 million tonnes in the new financial year and ease the crippling fuel scarcity in the power sector.

The ministry, which has taken a pro-industry stance since Veerappa Moily took charge, has ruled that mines with an annual capacity of up to 8 million tonnes can expand capacity by up to 50% without holding public hearings. This exemption will apply to one-time capacity expansion in projects that do not involve land beyond the existing lease area. Several mining projects have been stalled because of the earlier provision that required public hearings if the capacity was being expanded by 25%.

The decision is a big boost for Coal India, which has been under enormous pressure to boost output as large power generation capacity is idling or underutilised because private investment led to record capacity addition in the last fiscal year while coal output stagnated.

Coal India produced about 450 million tonnes last fiscal. It has 400 mines with annual production of less than 8 million tonnes. "We are easily looking at an increase of 30-40 million tonnes increase in production in the next financial year ... the increase could be even more, but, at this stage we will study the possibility of increasing production by 50% for all mines in this category. This order will give a boost to production teams at every mine as they can increase production by 1 to 1.5 million tonnes without additional hearing," said Coal India Limited Director N Kumar.

Tuesday's order increases the ambit of an expansion that has been in place since December 2012. Former environment minister Jayanthi Natarajan had exempted existing coal mines with plans to increase production by as much as a quarter of the current permissible production levels from holding public hearings as part of the environment clearance process.

The decision to further relax the clearance process for expansion projects comes at the behest of the coal ministry, which argued that the December 2012 exemption norms were unfavourable for smaller coal mining projects. For mines with lower permissible annual production levels, a 25% capacity increase worked out to a negligible increase. Therefore, were unable to avail of the exemption from holding public hearings for getting the clearance.

Moily's latest industry-friendly move comes at a time when the environment ministry has been under attack, particularly from infrastructure ministries, for delays in clearing projects. The coal ministry has consistently maintained that these delays were primarily responsible for lower coal production. However, some experts say delays in environmental clearance is only part of the reason for Coal India's failure to meet annual production targets. Lower coal production adversely affected power, steel and other industry projects, all of which a section of the government and industry claimed was derailing India's growth. The coal ministry, in particular, has since 2009 been demanding a more liberal and pro-growth environmental regulatory framework.

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UP govt pulls plug on Dopaha power project after Centre’s green snub...

 

The Uttar Pradesh government has finally pulled the plug on its 1,980 mw coal-fired Dopaha power project in Sonebhadra after failing to get a green nod and land for the plan. The state has been trying to kick-start the project for four years.

The 3x660 mw supercritical plant needed 1,475 acres land, approximately 9.7 million tonne per annum coal and 60 cusecs of water.

But ever since its inception in 2009 by the then Mayawati government, the project has faced hurdles in getting land and environmental clearances. The decision to shelve the project was taken Thursday evening by an energy task force (ETF) headed by the chief secretary.

An official of the state power department said the government thought it was better to bury the project because there was no hope of either getting the land or the green nod from the Centre.

The state government had been trying to get the environmental clearance since 2010. The Centre had denied the clearance on the ground that the nearby Singrauli area was under observation because of pollution from the production of 10,000 mw of power in the area. The UP government tried to reason with the environment and forest ministry, saying Dopaha, in Sonebhadra, is 30 km away from the Singauli area and will in no way add to the pollution of the area.

According to the environmental ministry, a study carried out by the Centre at Singrauli warned that these power plants could cause irreparable damage to the environment of the area. Accepting the preliminary findings of the study, the environment ministry said that no power plant should come up in the notified (Singrauli) area till a Central team completes its study on the environmental hazards of these power plants.

The state government, on its part, contested the view and said that the Centre was building up a flimsy ground to deny it the right to set up a power plant near a mine-rich area.

Singrauli, which is fast emerging as an energy hub of India, houses a total installed capacity of approximately 10,000 mw. This is more than 10% of total installed capacity of the entire country.
A major chunk of the power produced at the pit-heads of Singrauli goes to the central and private sectors, including NTPC’s Vindhyachal project (3260 mw), Shaktinagar project (2000 mw) and Rihand Super Thermal Power project (2000 mw) in Rihandnagar. Also, Sasan Power Limited is setting up a 4000-mw ultra-mega power project at Singrauli.

The MP government, too, has set up its own power projects here.

“Uttar Pradesh has only Anpara A, B and D and Obra thermal Power Station near the mines. For a power-starved state like UP, not being able to set up even one plant at Sonebhadra would mean taking the project to a faraway place. This will force additional cartage and result in expensive power for people,” an official of the UP Power Corporation said.

"To nip our proposal was uncalled for...it is likely to jeopardize the development of the power sector in UP.”

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Environmental panel clears Simang I and II hydel projects in Arunachal Pradesh...

 

A key environmental panel has recommended clearance for two hydel power projects in the Siang river valley in Arunachal Pradesh.

The two projects—Simang I and II totalling 133 MW—are located on the Simang, the right bank tributary of the Siang River. Projects in the Siang river basin are viewed as strategically important on account of the border with China. Adishankar Power Pvt Ltd is the project developer.

The Expert Appraisal Committee on River Valley and Hydroelectric Power Projects decided to recommend to the environment ministry that the two projects be cleared subject to requisite clearances from the National Wildlife Board, since Simang II is 6.4 km away from the Mouling National Park.

The panel has asked the developer to revise the cost estimate of implementing the environmental management plan, as it found the figures submitted by it to be on the lower side. It has also suggested that environmental flows of the river should be in line with the recommendations of the Siang Basin study report for winter or lean, monsoon and non-lean and non-monsoon seasons. As of now, the Simang I and II hydro-power projects are the only projects on this river.

The total land requirement for Simang I is 54.58 hectare, of which 32.74 hectare is forestland. The 18-metre barrage will result in a submergence of 15.5 hectare.

Simang II, on the other hand, requires about 46.14 hectare of land, of which 26.75 hectare is forestland. The 18-metre barrage will result in a submergence of 10.57 hectare of land.

Projects in the Siang river basin are seen as strategically important. The Yarlung Tsangpo is known as the Siang after it enters India in Arunachal Pradesh. This is what gives the Siang basin its strategic significance from an international point of view.

The government considers developing the Siang basin important as it will not only help India counter Chinese build-up in the area but also strengthen its negotiating position with China.

India and China have no water agreements. As a result, there is no structured international convention under which India can appeal should its lower riparian rights be affected by the power projects on the Tsangpo.

In this context, developing the Siang basin provides India the best safeguard. As early as August 2010, the then environment minister Jairam Ramesh had written to Prime Minister Manmohan Singh saying the environment ministry would ensure expeditious forest and environment clearances for all projects on river Siang without ignoring ecological concerns.

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Commission reviews all the eight missions under the NAPCC...

 

A committee set up under the principal secretary to the prime minister is trying to streamline all the eight missions under the National Action Plan on Climate Change (NAPCC).

The eight missions under the NAPCC include the national solar mission, the national mission for enhanced energy efficiency, national mission on sustainable habitat, national water mission, national mission for sustaining the Himalayan ecosystem, national mission for a green India, national mission for sustainable agriculture, and national mission on strategic knowledge for climate change.

The committee headed by Pulok Chatterjee, principal secretary to Prime Minister Manmohan Singh, will meet in January, said a senior environment ministry official. The panel’s terms of reference include reviewing the missions and trying to work out a synergy between them.

Ministries dealing with the environment, water resources, urban development, agriculture, power, and new and renewable energy are the nodal agencies for the missions.

“We will be monitoring the progress of all the missions on a quarterly basis and bring out all the key action points for all of them,” said the official quoted above on condition of anonymity.
The NAPCC, prepared in 2008, was intended to serve as a road map on how India plans to combat climate change, uniting it with the country’s development concerns and the need to sustain economic growth.

Because multiple ministries and agencies are involved in the planning and implementation of these missions, it is important for them to have a common format on the basis of which the progress of the missions can be reported and reviewed, said the official cited above.

“The members of the committee include the secretaries of all these ministries in addition to representatives from the Planning Commission and the finance ministry,” the official said.

The official said that it was important for all the missions to have short-term goals on a quarterly basis. “They have to list their top priorities. We have told them to achieve the maximum of their goals in the next 2-3 years. There will be a final review in 2017 for all of them,” the official said.

The committee has advised all the ministries to synergize the missions with the existing schemes. “We have told green India mission to sync with Mahatma Gandhi Rural Employment Guarantee Act (MNREGA),” the official cited above said.

Under the sustainable habitat mission, the urban development ministry has plans to construct metro trains in some cities. “They are also improving solid waste management and have issued advisories on energy efficient buildings,” the official said.

Bureau of energy efficiency (BEE) under the power ministry is the nodal agency for implementing the national mission on energy efficiency. Ajay Mathur, director general, BEE, said that the key is to see what the impact of these missions is.

“Our quantitative reporting will start only September next year as that is when our schemes will start playing out. For this quarterly review, we will only be saying whether our schemes are on track or not,” said Mathur.

Prodipto Ghosh, a member of the Prime Minister’s council on climate change, said the review showed the government’s seriousness in implementing the NAPCC.

“The review will then be presented to the Prime Minister’s council on climate change which is headed by the Prime Minister and he can take stock of it,” said Ghosh.

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Clearances of Odisha power project coal blocks may be de-linked: Report

 

The government may de-link forest clearance of coal blocks for 4,000-MW Odisha ultra-mega power project (UMPP) with the environmental clearance accorded to the entire plant, so that delay in development of mines does not affect the construction of the thermal station, according to a source close to the development.

This development comes after the Coal Ministry last week issued show-cause notice to Power Finance Corporation seeking explanation for delay in commencement of production from the allocated mines.

"MoEF (Ministry of Environment and Forests) is likely to de-link forest clearance of coal blocks for 4,000 MW Odisha UMPP with the environmental clearance accorded to the entire plant so that delay in development of mines does not affect the construction of the thermal station," the source said.

The Coal Ministry has also said that if these firms fail to give reasons for the delays it would be presumed that it has no explanation to offer and appropriate action will be taken against the company.

As many as nine companies have qualified the first bidding round for the Odisha UMPP and are likely to participate in the second and final round also.

NTPC, Tata Power, NHPC, Adani Power, JSW Energy, Jindal Power, an arm of Jindal Steel & Power, Sterlite

Infraventures, CLP India and Larsen & Toubro had submitted applications for the Odisha project.

Odisha UMPP is a pit-head power project. Based on domestic coal, to be sourced from allocated captive coal blocks, it is expected to cost around Rs. 25,000 crore.

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Government working on policy to fast-track clearances for the power projects...

 

The power and environment ministries are working together on a policy to fast-track project clearances by which clearances would be considered as deemed in case central and state governments failed to clear them within a specific deadline.

"The power and environment ministries are working together for a policy to allow clearances within a time period. A lot of time is now being consumed on environment and forestry clearances at state and centre levels for power projects. Now, if you won't get those clearances within a timeline, the clearances would be considered as deemed and the company can start its work, Power Minister Jyotiraditya Scindia said here Saturday at an interactive session during the 86th Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry.

The Cabinet Committee on Investments (CCI) has put in motion a process to bring 255 stalled projects involving an investment of Rs 10 lakh crore for speedy clearance. On Friday it queried the power ministry regarding land acquisition for ultra mega power projects (UMPP).

Scindia also said the power ministry will circulate two cabinet notes within a month proposing changes in the Tariff Policy and Electricity Act 2003.

There would be two separate cabinet notes and I am speaking to various stakeholders and it is set to come up within a month's time," Scindia said.

The various stakeholders in this case are the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), principal secretaries of all state governments and the power generation, transmission and distribution utilities. -

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MoEF gives nod to GSECL’s Rs 4,100 Cr Wanakbori unit...

 

The Gujarat State Electricity Corporation Ltd (GSECL) has received environmental clearance from the Ministry of Environment and Forests to set up a 800 MW power unit at a cost of over Rs 4,100 crore. However, the ministry has directed GSECL to phase out and dismantle "old and inefficient" units at its Wanakbori, Ukai and Gandhinagar stations.

This 800 MW power generation unit will be the biggest in the existing coal-based Wanakbori Thermal Power Station of GSECL in Kheda district, which currently has seven units of 210 MW each.

While granting the clearance recently, MoEF has laid down certain "specific conditions" for GSECL. "Old and inefficient units, which have outlived the plant life, Unit 1, 2 and 3 of 210 MW each at Wanakbori and 120 MW units at Gandhinagar and Ukai, shall be phased out and dismantled within the next three years or before commissioning of the Wanakbori unit, whichever is earlier," the ministry stated while giving clearance on December 2.

"Life Cycle Assessment of old units — 4 to 7 of 210 MW each at Wanakbori — shall be carried out either by Central Electricity Authority or any other competent agency and vetted by CEA. In case the units are found fit for efficient operation after proposed overhauling, the ESPs (Electrostatic Precipitators) shall be replaced or retrofitted so that particulate emission does not exceed 50 mg/Nm3," it added.

The MoEF has also asked GSECL to conduct a long term study on radioactivity and heavy metals content on coal that will be used. "A mechanism for an in-built continuous monitoring for radioactivity and heavy metals in coal and fly ash shall be put in place," it said. The coal requirement of 4.17 MTPA (million tonnes per annum) for this unit will be obtained from Maccha Kata Captive Mine in Talcher, Orissa.

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Government exempts UMPPs from compensatory afforestation clause...

 

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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Govt Sitting on Over Rs 4 lakh-cr Power Projects...

 

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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R-Power may need to provide 1385 Ha Non-Forest Land in Liu of the land for Sasan Ultra Mega Power Project...

 

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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Lack of clearances, stranded projects and helpless power ministry...

 

If the number of power projects getting stranded due to lack of clearances is any indication, the Union Power Ministry is slowly but surely becoming powerless much to the chagrin of project developers. With its intervention with other ministries and the state governments having no impact, the Power Ministry has now approached the Cabinet Committee on Investment (CCI) for supporting in expediting clearances in respect of some power projects. Indeed the amount at stake is too huge (approximately Rs. 40,000 crore) to be ignored.

 

Some of the power projects facing delay due to lack of clearances are listed below:

Meenakshi Energy’s 1,000 MW Nellore power project:
While getting environment clearance (EC) is a mammoth task, Meenakshi Energy has committed a blunder by allowing it to expire. EC granted for the second phase of Meenakshi Energy’s 1,000 MW thermal power project located in Nellore district of Andhra Pradesh expired on July 1, 2013. While Expert Appraisal Committee (EAC) has recommended extension of validity period of the EC in its meeting held on May 20, 2013, formal letter if consent from the MoEF is awaited. The Ministry of Power is knocking at the doors of CCI to seek its support to secure the extension. Meenakshi Energy’s first phase of the project with a capacity of 300 MW is already under operation.

Sagar supercritical thermal project:
Universal Crescent Power Private Limited who is implementing 1,980 MW imported coal fired power plant at an estimated cost of Rs. 8,600 crore has completed the land acquisition process and has signed Fuel Supply Agreement as well as PPA (Power Purchase Agreement). However, the company is unable to cross the last hurdle, that is, the EC and Coastal Regulation Zone (CRZ) Clearance. Sagar Supercritical Thermal Project at Nayachar Island, in District Purba Medinipur, West Bengal is in a spot as the Expert Appraisal Committee (EAC) feels that the site selected for the project is ecologically fragile and sensitive. EAC in its meeting held September, 19 felt further deliberation is needed to accept the suitability of the site for setting up the project. Ministry of Power has reportedly approached the CCI to take up the matter with the MoEF.

Machhakata-Mahanadi coal block:
Machhakata-Mahanadi Coal Block, allotted in 2006 for captive mining to MAHAGENCO and Gujarat State Electricity Corporation Limited (GSECL), has been delayed due to a slew of pending clearances from the Odisha government. Mahaguj Collieries Ltd is the joint venture formed between Mahagenco and GSECL to mine and share the production in 60:40 ratio. Mahagenco was supposed to use the coal from the block for generating power from Parli (250 MW), Chandrapur (1000MW), Koradi (1980 MW), Bhusawal (660 MW) and Dhopave (1980 MW) whereas GSECL will use it for Wanakbori (800 MW), Ukai (500 MW), Dholera (1600 MW) and Sinor (1600 MW). MCL is also planning 2,500 MW (10X250MW) thermal power project based on wastes from coal washeries.

The Odisha government is demanding 25% free power from thermal power plants and 33% from plants generating power from rejects of washed coal. In fact, the Odisha government has restricted land acquisition outside coal block area for supporting infrastructure and over burden dumping which is adversely impacting Mine Plan for development of the coal block. Also there is strong resistance from local residents to part with their land. Development of mining block has made no progress so far as the Odisha government has not yet issued Mining Lease and Environment and Forest clearances are also pending. Even land acquisition has not made any progress. Repeated requests from the Power Ministry have had little impact on the state government which has forced the former to approach CCI for intervention.

Hinduja National Power Corporation’s 1050 MW Vishakhapatnam thermal power project:
Foundation stone for 2×525 MW Vishakhapatnam thermal power project by Hinduja National Power Corporation Limited was laid in 1994 and PPA was also signed in the same year but the project is yet to see the completion till date. The project has crossed all the hurdles but one, that is, Coastal Regulation Zone (CRZ) clearance. According MoEF the state government has not yet submitted report regarding alleged violation of the CRZ by the developer. Rs. 5,545 crore project for which FSA has already been signed is likely to be commissioned in March 2014. But the CRZ clearance is pending with the MoEF for a long time and now the Ministry of Power has sought the direction of the CCI in the matter.

1,080 MW Rajwest pithead thermal power project:
For the 1,080 MW Rajwest Pithead Thermal Power Project in Rajasthan the main hurdle is in the form of enhancement of capacity of linked mines. The Rajwest 1,080 MW pithead TPP has been allocated two lignite mines, Kapurdi and Jalipa, of which Kapurdi mine is currently operational at 3 MTPA. This capacity, however, is sufficient to run the plant only upto October, 2013. Thus there is an urgent need to get the mine plan and mine closure plan approved. Ministry of Power wants the CCI to seek Ministry of Coal’s intervention and get the approval without further delay.

Also the mining project need environment clearance as the capacity expansion is more than 25%. Though the EAC has cleared the project, Ministry of Power wants CCI to intervene with the MoEF to expedite the matter. In case of Jalipa mine, land acquisition issues are holding back the project. Also transfer of mining lease from Rajasthan State Mines and Minerals to Barmer Lignite Mining Company Limited yet to take place.

Fatehpur coal block:
In case of SKS Power Generation Chhattisgarh Limited’s 1, 200 MW project, issue of Prospecting License (PL) is pending for Fatehpur Coal Block at Chhattisgarh state government level. The state government reportedly has demanded firm coordinates while the company had sent approximate coordinates from CMPDI (Central Mine Planning and Design Institute). Ministry of power has approached the CCI to take up the matter with the state government to expedite the issue of PL.

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Ministries of coal, power up in arms over MoEF proposal...

 

The proposal for a longer and arguably more "realistic" timeline for clearance to projects needing forest land has two key ministries up in arms. The Ministry of Power and Ministry of Coal are opposing the Ministry of Environment & Forests (MoEF) move to double the 150-day limit for processing forest clearance proposals to 300 days for projects involving diversion of over 100 hectare forest land.

The two ministries have repeatedly attributed delays in projects to cumbersome procedures in seeking green clearance. The Jayanthi Natarjan-led MoEF has decided to amend Forest Conservation Rules to usher in more 'realistic' limits that can be met, and which allow more time to both the State and the Centre to assess projects that need forest clearance.

The draft rules were circulated to all concerned ministries. The power and coal ministries argued that it will only delay clearances further and hold back projects.

The draft rules proposed 140 days for smaller projects needing up to 5 hectare land.

The present blanket rule asks states to examine and recommend fresh forest clearance proposals within 90 days (3 months) of receipt of the proposal from the user agency and for the Centre to reject/approve it within 60 days, but the process is said to drag on, for even two years or more.

The proposed rules have timelines depending on land. Total time including the procedures at the State and Central levels, sets a 140-day limit for processing forest land diversion up to 5ha, and 300 days for projects involving diversion of over 100 hectare of forest land.

A project involving diversion of 5ha, will thus be processed faster than one involving over 100ha. The proposed rules suggest detailed and tiered (for diversion of 5ha, 5ha-40ha, 40ha-100ha and over 100ha) timeline at each level from the state to the Centre including transit period, so the time frame is 'realistic' and 'workable'.

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Neyveli's mining project in Rajasthan recommended for clearance...

 

An high-level panel has recommended environment clearance to Neyveli Lignite's (NLC) mine in Rajasthan but with certain conditions.

Expert Appraisal Committee "after deliberation recommended the project for EC (Environment Clearance) with conditions," according to an official document.

NLC's Bithnok opencast mining project in the Bikaner district of Rajasthan has a capacity of 2.25 million tonnes per annum.

The conditions state that the environment management plan shall be prepared and implemented to minimise the adverse environmental effects.

It also says forest patch found in the southern part of the mining lease shall be left undisturbed and the Corporate Social Responsibility (CSR) cost should be Rs 5 per tonne of coal produced which should be adjusted as per the annual inflation, among others.

Neyveli Lignite had said in September that there is a proposal to set up a 250 MW thermal power plant with the linked lignite mine of 2.25 MTPA capacity at Bithnok in Rajasthan at an estimated cost of Rs 2,298.83 crore.

It had also said that land acquisition through Rajasthan government and diversion of forest land is being pursued.

Obtaining environment clearance is in the process. In this regard, Madras School of Economics has prepared a Social Cost Benefit Analysis Study Report which has been sent to the Environment Ministry for the issue of environment clearance for Bithnok mine project. Power purchase agreement has been signed with the discoms.

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Around 37% area of Western Ghats have been notified as no-go Zone for thermal projects by MoEF...

 

MoEF notified around 60,000 Sq km area of the Western Ghats across six states as ecologically sensitive are (ESA), making it a no-go zone where activities like mining, quarrying and setting up thermal plants and other high polluting industries will be banned with immediate effect.

However the hydro electric power projects and windmill will be allowed in the ESA under strict green norms and monitoring.

Under the said notification, the MoEF has listed out state-wise, district-wise and taluka-wise villages of six states - Gujarat, Maharashtra, Goa, Karnataka, Kerala & Tamil Nadu.

A committee will be consituted to monitor implementation of the directive.

The original article is posted here.

The directive of MoEF can be downloaded from here.

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Power producers seek rejig of MoEF panel on Uttarakhand disaster...

 

Private power producers have requested Prime Minister Manmohan Singh to reconstitute the Environment Ministry's committee on assessing the impact of Uttarakhand disaster, saying that it lacks the state's representation.

Heavy monsoon rains and landslides wreaked havoc in the hill states of Uttarakhand and Himachal Pradesh and flooded parts of Haryana on June 16 and 17, leaving close to 1,000 people dead.

The disaster affected power generation at many hydel plants in Uttarakhand and Himachal Pradesh.

"Water is one of the precious and critical resources of the state of Uttarakhand, and contributes to the state's economic growth and development. Therefore, the representation and participation in such critical study would be paramount," Association of Power Producers said in a letter to Singh.

"We request you to take up with MoEF ( Ministry of Environment and Forests) the matter of reconstituting the body with inclusion of appropriate domain experts without a stated position on the matter in order to avoid personal biases and prejudices and also to ensure a balanced and outcome of the proposed study," APP Director General Ashok Khurana said.

APP is an industry body representing the private power producers in the country.

The letter said that MoEF will need to conduct social, ecological and economical impact of the projects along with the benefits and then give a balanced view aimed at promoting sustainable growth in the region.

It added that appropriate level of representation and participation from Government of Uttarakhand is not there in the presently constituted committee by MOEF.

"Equally important is the need to maintain objectivity in the findings of the committee, which might prove to be a difficult task if the committee consists of members with a very strong and stated position on the matter to be examined," APP said.

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Exempt UMPP from compensatory afforestation clause, says power ministry...

 

The power ministry plans to give a shot in the arm for ultra mega power projects and has approached the Cabinet to exempt the plants from a key provision of the Forests Act, 1980, that requires companies to identify land for mandatory compensatory afforestation.

To facilitate this, the ministry has approached the Cabinet Committee on Infrastructure seeking 'central government' status for ultra mega power projects for the purpose of acquiring forestland. Under the current system, unlike private developers, central government projects are not required to identify non-forest land for compensatory afforestation or pay any money for the purpose.

Exempt UMPP from compensatory afforestation clause, says power ministry The existing provision helps state companies such as NTPC to develop projects smoothly, but private firms face numerous obstacles in securing approvals and clearances required for identifying the appropriate patch of land to plant trees in lieu of forest land that a project needs. The power ministry wants now wants the same provision to be applied to all companies. However, the power ministry has proposed that developers of ultra mega power projects be asked to pay for afforestation although state governments should identify the non-forest land.

"We have approached the Cabinet Committee on Infrastructure for tweaking the compensatory afforestation norms for the Tilaiya ultra mega power project in Jharkhand. If approved, the change would benefit both existing and future ultra mega power projects," a senior power ministry official said.

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 an equal area of non-forest land in the same state.

The proposal is part of the government's efforts to revive investment and clear obstacles that have stalled giant projects such as UMPPs. 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 forest clearance for 1,220 acres of forest land but is still awaiting final handover from the state government.

Nearly 80% of land required for the project and attached coal mines fall under forest area. Reliance Power had ordered the main plant equipment for the Tilaiya project from China's Shanghai Electric, 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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Tamil Nadu takes Centre to SC for not re-classifying forest land for 1,500 MW thermal power...

 

The Tamil Nadu government has approached the Supreme Court against the Centre for not re-classifying forest land for a 1,500-Mw thermal power project at Tuticorin.

The project is joint venture between the Tamil Nadu Electricity Board (TNEB) and Neyveli Lignite Corporation (NLC).

Chief minister J Jayalalithaa said the Congress-led government at the Centre was not letting the project's progress.

Speaking on the power supply in the state, Jayalalithaa said: “Soon Tamil Nadu will become power surplus. When I said this last year, many scoffed at (the claim). When it is said now, everybody believes as 99 per cent of the target has been achieved, while the remaining would be achieved before this year”.

While studies are under way for setting up a 2,000-Mw hydel power plant in Nilgiri district with an outlay of Rs 7,000 crore, the preliminary work on a 1,600-Mw thermal plant in Uppur was under progress, she said.

The state would soon finalise tenders for 1,320 Mw thermal power plants at Udangudi to be set up at a cost of Rs 9,000 crore with coal jetty; Ennore Special Economic Zone costing around Rs 8,000 crore and a 660-Mw power plant here involving Rs 4,000 crore.

Jayalalithaa said the state had signed long term agreements (15-year tenure) with power producers to procure 3,330 Mw. A bulk of this would be from Odisha and Chhattisgarh.

Speaking about TNEB’s financial position, she said the utility’s financial position would improve soon. She alleged the previous DMK-led government was responsible for the loss.

As on March 2011, TNEB had incurred a loss of  Rs 40,375 crore. “The Reserve Bank of India (RBI) wrote to all banks not to lend to TNEB”.

Under the financial restructuring scheme, while 50 per cent of TNEB’s short-term debt will be taken over by the state government, the state had issued bonds worth Rs 6,353.49 crore to the banks.

Already, the state administration has given a guarantee for Rs 22,700 crore for it to raise debt and for restructuring Rs 5,951.43 crore of bank debt, she said.

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