Naveens power cess on IPPs gets PM nod

Bhubaneswar, Aug 30 | Updated: Aug 31 2006, 05:30am hrs
The Orissa governments move to levy environment cess on independent power producers (IPPs) has got a boost following support from the Prime Minister himself.

I have taken note of the Orissa governments plea. We will find a solution to the issue, the Prime Minister said during his recent Orissa visit. He also said development should not damage the environment.

The state government has been demanding compensation from export-oriented thermal power stations in Orissa. Chief minister Naveen Patnaik also raised this issue before the Planning Commission and the National Development Council, besides writing to the PM and the Union power minister.

Patnaik believed reform in the power sector for equitable dispensation to coal-bearing states was needed. and that coal mining and thermal power stations would have an adverse effect on the environment.