Construction of three large power projects in Orissa with a combined capacity of about 10,000 mw would start soon with a group of ministers (GoM) expected to give conditional nod for coal mining projects associated these power plants. These projects ? an ultra-mega power project (UMPP) in Bedabahal and two other large projects of NTPC and Orissa Power Generating Corporation ? have been held up for long thanks to the ministry’s policy of dubbing certain areas with thick forest cover as unsuitable for coal mining.
The GoM headed by finance minister Pranab Mukherjee has a mandate to finalise a long-term policy on coal mining in thickly-forested areas.
These three projects have all been allotted captive coal blocks in a contiguous area in Orissa, parts of which also have thick forest cover. Environment minister Jairam Ramesh has been saying that all three projects cannot be allowed to come up because that would put an intolerable burden on the forest. Approval could be given only to one of the three, he has said.
?The three agencies (UMPP nodal agency PFC, NTPC and OPGC) are jointly working on a plan to minimise the damage to forest cover from coal mining activities. This could involve redrawing the boundaries of coal mines. The plan will then be presented to the GoM for approval,? said an official with one of the power projects.
If the GoM agrees to the new plan, it will be yet another dilution of the environment ministry’s controversial ?go and no-go? categorisation of areas for coal mining. Several relaxations have been made on this policy since the ministry last year came out with it.
The power ministry has already informed the environment ministry that it wants all three projects to get clearance and is unwilling to accept the stand that only one ? possibly the UMPP ? could be cleared. ?We would also raise the issue at the GoM meeting to remove any ambiguity,? said an official asking not to be named.
The issue is also learnt to have been discussed by the Prime Minister’s Office at a meeting organised last week with all the ministries concerned to thrash out differences and clear the way for the projects. There is concern that stopping work on power projects would be disastrous for the economy targetting 9% growth.
Out of the three projects, mines associated with the 4,000 mw UMPP is closest to getting the environment and forestry clearance. The power ministry has already worked out a compromise formula with the environment ministry under which 200 acres of captive mines of the UMPP will be kept out of bounds for mining. Environment ministry sources said that this has been accepted by them and clearance for the project could be given soon. ?For the other two, it would be difficult for us to give the clearance,? the source said.
It is expected that a similar solution will be worked out for other two projects too where fresh boundaries may be carved out for the captive mines without much change in coal output. The state government-owned OPGC is pursuing capacity expansion by 1,320 mw of its existing thermal power station to feed the grid.