Allocation of captive coal mine for Orissa UMPP cleared: Shinde

Power Minister Sushilkumar Shinde today said the Environment Ministry has given the green signal for the proposed 4,000-Mw ultra-mega power project at Bedabahal, in Orissa, to mine coal from areas previously designated as "no-go" zones.

However, he clarified that the Power Ministry is yet to receive official confirmation from the Ministry of Environment and Forests (MoEF) on the grant of clearance for the UMPP.

"Orissa UMPP is cleared... We are hopeful of receiving the documents from the Environment Ministry soon," Shinde told reporters at an event here.

However, the Environment Ministry clearance comes with a catch.

The Bedahal UMPP is situated close to two other projects, one of which is being implemented by NTPC and the second by the Orissa state government.

While all three projects are hopeful of getting coal resources allocated for captive usage, the MOEF has stipulated that coal from the two "no-go" blocks where mining has now been permitted can only be utilised by two of the power projects.

In this regard, the MoEF may ask the Power Ministry to decide which of these three projects should get the coal blocks, as providing mines for all three projects would be difficult.

Power Finance Corporation (PFC), the nodal agency for implementation of ultra-mega power projects in the country, has already postponed the process of inviting preliminary bids for the Orissa UMPP till March next month.

This is the seventh time the bidding process for the project has been delayed due to environmental hurdles.

MoEF had put three coal blocks allotted to the project -- Meenakshi, Meenakshi B and the dipside of Meenakshi -- in "no-go" areas, which means mining cannot take place in these areas, as it may cause damage to the environment.

This had resulted in delaying the bidding process for the project, as developers are shying away from committing their capital in the absence of the requisite clearances.

The government has so far allotted four UMPPs, of which three -- Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power and one at Mundra, in Gujarat, by Tata Power.

These UMPPs are going to contribute significantly toward the government's ambitious plans of adding about 1,00,000 Mw of electricity in the next Five-Year Plan (2012-17).