Lanco construction in Dhenkanal by end-2009

Lanco Babandh Power Private Limited expects to start the construction work of its 1320 MW plant towards the end of 2009 if all goes well in its land acquisition drive.

The company had earlier targeted to begin construction work in 2008, but it has gone awry due to delay in land acquisition.

There would be two 660 mw units in the first phase with super critical technology of higher equipment efficiency.

This is the third utility after the GMR and Nababharat Power evincing interest to set up commercial power plant in Dhenkanal district.

The company authorities, however, aim to set up another 1320 MW unit in the second phase taking the total generation capacity to 2640 MW. Preparations are underway to sign a memorandum of understanding with the state government on the second stage, sources informed.

After entering into an agreement with the state in 2006 to set up a power plant in Dhenkanal, the company authorities were looking for suitable site after their original site at Babandh was found unsuitable for technical reasons. Finally they chose the location at Kharakprasad near NH 42, about 42 KMs away from the Dhenkanal town towards Angul for the proposed plant. Their initial date of beginning construction work was in 2008. But, so far, the company authorities are stuck with 4 (1) notification of land acquisition. 

The proposal for notification is kept pending with the state government due to urban body elections. Meanwhile, the company officials have begun talks with the local villagers on land and rehabilitation measures amid the demands from the land owners to pay RS 15 lakh per acre as compensation.

The company, while accepting the rehabilitation policy of the state, has offered employments to each of the affected family and promised to provide skill upgradatiion training to unskilled youths in the area.

According to sources, the plant needs about 1100 acre of tenancy land and 123 acre of both forest and government land affecting two villages named Kharakprasad and Kurunti under Dhenkanal tehsil. As per the initial projections there may not be any displacement of any family of these two villages but company official do not rule out that possibility during the final acquisition stage.

As regards to coal linkage, the company has been allotted a coal block for one 660 MW unit at Talcher Coalfield.

The Company also will draw coal from its joint venture project located in Sundergarh district to meet the coal requirement. The power generated at the station will go to Haryana, Madhya pradesh and Maharastra.