Ministry irked over slow work on big power projects
Sanjay Jog
Jun 30, 2009 at 2236 hrs

Mumbai: The power ministry, worried over meeting the 78,700 mw-capacity addition target by 11th Plan, has expressed serious concern over the slow pace of development of various ultra mega power projects (UMPPs) with a generation capacity of 4,000 mw each.

Sources at the ministry and Central Electricity Authority (CEA) told FE on Monday ‘‘UMPPs are either held up or delayed due to issues involving land, water allocation and environment clearance. The ministry had discussed these issues with states on June 23 and these issues are prerogative of the states and their co-operation is essential to resolve these matter.’’

As far as Sasant UMPP, which achieved financial closure in April, there is a slow land acquisition process and slow coal supply. Reliance Power, which has bagged the project, is in possession of 54% of 3,283 acres of land. The Madhya Pradesh government has agreed to hand over the balance land by June 30.

In case of Krishnapatnam UMPP in Andhra Pradesh, which is also being developed by Reliance Power, about 370 acres of land out of total 2,625 acres is still to be handed over to the developer. For the second UMPP, the state government will issue the consent for establishment of the project at Kotapeta village in Prakasham district.

As reported by FE last week, UMPP in Orissa is mired in controversy as the state government has decided to levy contribution of 5% profit of UMPP for peripheral area development. The Orissa government has so far stuck to its stand despite the power ministry’s request for its reconsideration. For additional UMPP in Orissa, the state government had earlier suggested five sites. Water availability for pithead locations to be initiated while the state government has to furnish the details of the proposed coastal sites.

In Maharashtra, the UMPP is locked in controversy as all political parties are opposing the project and that’s why the state government could not zero in on the project site. Resolution of local agitation will facilitate teams of CEA and the Power Finance Corporation to visit to the new site at Munge in the coastal Sindudurg district.
As far as UMPP in Chhattisgarh is concerned, initially the availability of water was proposed by the state government with construction of four hydro structures in river Rehar. However, the state government has now proposed eight hydro structures to meet additional requirement of water for other uses and no study has been done to examine the feasibility of the same. The power ministry has urged the state government to delink the construction of hydro structures so that the work can start the earliest. But the ministry is still awaiting the response of the state government.