Orissa's ultra mega power project may be delayed as PFC has not been able to get environment clearance for the project's coal mine

After the delay in Chhattisgarh ultra mega power project (UMPP), it is the Orissa UMPP that is likely to see an extension for the request for qualification (RFQ) as the power finance corporation has not been able to get environment clearance for the project’s coal mine.“Almost half of the proposed coal mine for the Orissa UMPP falls in the ‘no go’ area and cannot be used for mining purpose. As of now, we have not heard from the power ministry, whether we will get environment clearance for the coal mine or not. The final date for the RFQ is 30th July,” said Satnam Singh, CMD, Power Finance Corporation (PFC). PFC is the nodal agency for implementing all the UMPPs in the country.According to a power ministry official, two of the three coal blocks associated with Bedabahal (Orissa) UMPP are in ‘no go’ areas, where the environment ministry does not intend to permit any mining activities.

The Chhattisgarh UMPP is already facing a similar problem as the Hasdeo Arand coal field has been declared as a ‘no go’ area for mining by the environment ministry. The RFQ for the Chhattisgarh has been extended twice already and the new date for the RFQ is September 6.

The environment ministry had earlier carried out a joint exercise with the coal ministry studying nine major coal mining areas that concluded that over 35% of the area under study cannot be used for mining due to environmental and wildlife conservation concerns.The power ministry had planned to set up nine UMPPs, with four projects at pithead and five in coastal locations, to help meet the electricity generation target of 1,00,000 mw in the 12th plan period (2012-17). However in the current scenario, it looks unlikely that the government will be able to allot all the UMPPs as planned earlier. The government has already allotted four UMPPs.

Reliance Power has bagged three of the four UMPPs at Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh), and Tilaiya (Jharkhand), while Tata Power has been awarded the Mundra UMPP in Gujarat.