Government rejects Jindal Power project

It’s perhaps the first time the Union government has rejected an industrial project floated by an MP of its own party. In fact, the minitsry of environment and forests (MoEF) has asked Chhattisgarh government to take action against Congress MP and industrialist Naveen Jindal’s company, Jindal Power Ltd (JPL). Worse, a close look at the exchange between JPL and various government bodies shows the company persisted with the project despite violating multiple rules.

JPL is part of Jindal Group’s steel and power empire. Raigarh, a district of Chhattisgarh bordering Orissa, is its most important hub. The group has built the world’s largest sponge iron and steel plant here, and a 1000MW thermal power plant, often riding over local protests and allegations of violations.

As part of its expansion plans, the company wanted to build a 2400MW thermal power plant in Tamnar block of Raigarh, but a local environmentalist managed to prove the allegations this time around. Ramesh Agrawal, the founder of a local environmental group Jan Chetana, wrote a series of letters to Union minister of environment Jairam Ramesh since March this year. He drew attention to the fact that JPL had started construction on the site of its proposed thermal power plant even before it had received environmental clearances.

Problem Points

Jindal Power began construction on site Before getting environmental clearance Without NOC from Chhattisgarh Mineral Development Corporation Before holding a public hearing Initial proposal said project would use 1041 hectares; location was later changed and just 62 hectares used to set up project Did not inform environment ministry of change of location

‘No expansion of project in Chhattisgarh’

Atwo-member team of the MoEF visited Raigarh on 22 May and found the allegations true. On 18 June, the ministry withdrew “terms of reference” and directed the state government to take action against the firm. But even before MoEF rejected the project, the firm had run into trouble with the state government as early as February 22. ‘‘ We asked them to stop work,’’ said Baijendra Kumar , chairman, Chhattisgarh Environment Conservation Board.

According to a Jindal group official, the company will be making a representation to MoEF and state authorities. ‘‘ We have not done any expansion and the construction is for setting up a stacker reclaimer for the existing 1000MW power plant. We are confident that the terms of reference of MoEF would be restored.’’