Orissa clamps tough conditions for Adani Mining's power project

The Orissa government has put stringent environmental conditions for Adani Mining Private Ltd (AMPL), which proposed to set up a 2500 Mw washery reject based power plant at Machhakuta in Angul district. The project, to be implemented in two phases, was to cost Rs 13,750 crore.

Since the coal rejects to be used for power generation will create more pollution, the company will have to pay 10 paise per unit of power generated to the Environment Management Fund (EMF) instead of 6 paise for other coal based IPPs.

It will have to provide 20 percent of the power to the state at variable cost compared to 12 percent for other IPPs.

Apart from adhering to the environmental norms set by the Orissa State Pollution Control Board (OSPCB), it will have to set up a food processing park in the state.

The company will have to give in writing about the acceptance of these stipulations after which its proposal will be considered by the State Level Single Window Clearance Authority (SLSWCA), sources said.

Following criticisms in various quarters that the state government including the OSPCB is not doing enough to check pollution and protect environment, SLSWCA chaired by the chief secretary has taken this decision.

After the company gives written assurance to conform to these stipulations and submits a detail proposal on the food processing park, its proposal will be considered, sources added.

Simultaneously, SLSWCA has also decided to incorporate these conditions for setting up washery reject based power projects in the thermal power policy of the state. Once this is incorporated, the amended policy will be put before the cabinet for approval.

It may be noted, Adani Mining has proposed the Orissa government to set up a 2500 Mw washery reject based power plant in the district of Angul.

The project requires 2000 acres of land and 11,250 cum water per hour, to be sourced either from Brahmani or Mahanadi.

While the coal requirement is assessed at 23 miillion tonne per annum, the first unit of 250 Mw is projected to be commissioned within 27 months from the date of signing the MoU. The total investment is projected at Rs 13,750 crore with a debt-equity ratio of 80:20.