Green panel defers call on 11 power projects of over 8000 MW

A panel under the Ministry of Environment and Forests has deferred decision on clearing 11 power projects, with total capacity of 8000 MW, on various grounds.

The projects include those of state-owned NMDC (2x250 MW), JSW Energy (Bengal) Ltd (1x660 MW) and Lanco Vidarbha Thermal Power Ltd (2x660 MW), according to the minutes of the meeting of the Expert Appraisal Committee.

The EAC has put off some projects at the 'Terms of Reference' level, while others have been put on hold at the environmental clearance stage.

The meeting of EAC, held in the third week of September, reviewed as many as 20 power projects with a total combined installed capacity of more than 16000 mw.

Minister of State of Power Jyotiraditya Scindia had earlier informed Parliament that the Planning Commission of India has set the target of capacity addition of 88,537 MW during 12th Plan period (2012-2017).

During the current financial year, 2013-14, the capacity addition was planned at 16,402.3 mw with majority from coal- based power plants.

According to industry experts the delays may not lead to escalation of costs but the country may miss annual power capacity addition targets.

Although the environmental issues should be given paramount importance, it is difficult to achieve targets under the present circumstances, they added.

Jagannadham Thunuguntla, Strategist & Head of Research at SMC Global Securities Ltd said the Government needs to take steps to build confidence levels among the project proponents.

"To rebuild business confidence, it is imperative that the process of clearances should be sped up so that businessmen can concentrate on business," Thunuguntla said.

Y Harish Chandra Prasad former chairman of industry body CII, Andhra Pradesh and Chairman of Malaxmi Group, an infrastructure development enterprise which has interests in power projects, said the delays in getting environmental clearances may not lead to project cost escalation as project developer would go for project finance only after getting "green signal" from the MoEF.

"Delay in getting environmental clearances may lead to missing the 12th plan targets. Environmental and statutory clearances are the most important approvals which have to be complied with," Prasad said.

According to EAC, JSW Energy (Bengal) Ltd, implementing the power project at in West Medinipur District, West Bengal, the proposal for TOR has missing gaps of information and hence the proposal was deferred.

In case of NMDC power project in Gonda, Uttar Pradesh, the committee felt the land where the project was proposed was fertile agriculture land and hence suggested the company to go for alternative land.