Government decides against relocation of NTPC's North Karanpura project

Cabinet committee also agreed to restore the original coal linkage for the Karanpura project.

The government today decided against relocating power producer NTPC's proposed 1,980 MW North Karanpura project in Jharkhand and the plant would get necessary coal linkages.

"The Cabinet Committee on Investment has cleared the proposal for setting up of the North Karanpura thermal power plant in Jharkhand," an official release said.

The Cabinet Committee on Investments (CCI), constituted in December last year, reviews the procedure followed by ministries in granting or refusing clearances for infrastructure and manufacturing projects costing more than Rs 1,000 crore.

Sources said CCI also decided to accord clearances to six of the 12 coal mining projects stuck for want of vaious approvals. They, however, did not divulge the details.

The CCI, headed by Prime Minister Manmohan Singh, also agreed to restore the original coal linkage for the Karanpura project.

The coal supply would be made available during the 13th Plan (2017-22) priod, the release added.

It also said the environment safeguards as recommended by the Chaturvedi Committee will apply.

NTPC is planning to set up a 1,980-MW power plant in the vicinity of Tandwa town in the Chatra district of Jharkhand. This would be the company's first first project in the state.

The project will be on a pit-head with environment friendly super-critical technology. The power will be generated by NTPC for about 35 years of plant life.

This is the first project of NTPC in Jharkhand which will benefit the state where about 26 per cent of the population is tribal, the release said.

The coal and power ministries had locked horns over the location of the plant as the former was contending that the area has 6 billion tonnes of coal reserves underneath.

The Coal Ministry had even withdrawn coal linkages in 2008. It had stated in a he Cabinet note that executing a power plant over the proposed site would pose threat to the environment.

A Group of Ministers on coal constituted a sub-committee in September 2011 under the chairmanship of Planning Commission member B K Chaturvedi to look into the issue.

Power Ministry had said that NTPC required restoration of original coal linkage to set up the power plant.