Land acquisition still hurdles Sasan UMPP development

Implementation of the Sasan ultra mega power project (UMPP), in Madhya Pradesh, continues to be at an impasse, owing to the delay in acquisition of land for construction of the project. Out of the total land requirement of 3,484 acres, only 2,210 acres, or around 63.45%, has been acquired, so far. Although even the power ministry has taken up the issue, repeatedly, with the state government authorities, the entire process is yet to pick up pace. Further, the Anil Ambani-led Reliance Power Limited (RPL) is yet to even initiate the acquisition of 6,112 acres of land required for development of the captive coal mines-- Mohar and Mohar Amlohri-- linked with the project. However, on the brighter side, according to Central Electricity Authority (CEA) sources, the developer, two years after winning the project, has managed to acquire 72% of the land needed for the construction of the main plant, allowing it to finally kick off initial construction activities. According to the central agency, the foundation work for the boiler and chimney is also in progress.
 Further, Sasan Power Limited (SPL), the RPL-owned special purpose vehicle (SPV) developing the project, has also awarded the civil works contract for the coal conveyor, which is to be laid from the coal mines to the power plant, over a distance 17 km. However, SPL will not be able to actually commence construction of the conveyor system, coal handling plant and other important project components, such as the intake and discharge water channels, ash pipeline, etc, in the absence of land. Even though the mandatory Section 5A hearing has been completed for the acquisition of the 48 acres of private land, out of the total 58 acres required for the conveyor system, surrender is still to be effected. Transfer of the remaining 10 acres of government land is also pending.
 As per the latest schedule, the first two units of the project are due to be commissioned within the 11th Plan period (December 2011 and March 2012), while the other units are expected to go on stream at successive intervals of three months until March 2013, when the entire project would be operational. RPL achieved financial closure for this project in April 2009.