CESC may get land for 1000 MW power unit in Orissa by June

CESC Limited, the flagship company of the Kolkata-based RPG Group expects to complete land acquisition for its proposed 1,000 MW coal-based power plant at Neulapoi in Orissa’s Dhenkanal district within three months.

Company sources said the notification for land acquisition under Section 6 (1) has already been issued for the Orissa power project and the process of land acquisition was expected to be completed within three months. The notification for land acquisition under Section 6 (1) was issued two months back.

CESC needed about 1,200 acres of land for its 1,000 MW coal-based power plant which was being taken up at a cost of Rs 4,042 crore. It had sought 1,200 acres of land from the Orissa Industrial Infrastructure Development Corporation (IDCO) for its power project.

The company had signed an MoU (memorandum of understanding) with the Orissa government in September 2006 for setting up the power plant and the project is scheduled to be operational by 2013.

CESC is also in the process of finalising the bidding process for selecting an EPC (engineering, procurement and construction) contractor. The company expected to issue the letter of intent to the EPC contractor by the first week of April this year.

Besides, CESC was also through with its Environmental Impact Study (EIA) for the 1,000 MW power plant and had filed an application with the Orissa State Pollution Control Board for conducting the public hearing for the project.

Asked on the coal linkage for the power plant, company sources said, "We are in constant touch with the Union ministry of coal and the Central Electricity Authority (CEA) for securing the coal linkage. CEA has assured us that it will place our demand for the coal linkage before the Standing Committee on coal linkage."

In November 2008, the Orissa energy secretary had written to the Union coal ministry, seeking long-term coal linkage in favour of CESC Limited. CESC expected to get the coal linkage by the end of 2009.

CESC needed 4.53 million tonnes of coal per annum for its 1,000 MW power project. Without the coal linkage, the company was unable to achieve financial closure. The company has been approved a water supply of 40 cusecs per day from river Brahmani for the power plant.

Meanwhile, CESC was also mulling to undertake renewable energy projects in segments like solar power, wind power and bio-mass. However, details like location and investment for these proposed non-conventional energy projects were yet to be worked out.