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Odisha to exclude mineral bearing land for JSPL's CTL project

In a draft MoU to be signed with promoter, industries dept clarified it is Odisha Idco's responsibility to ensure that no such land is allotted for project

Jayajit Dash  |  Bhubaneswar 

The Odisha government has decided to exclude mineral bearing land and land falling under the command area of irrigation project from land acquisition drive for the Rs 60,000 crore coal-to-liquid plant proposed by Jindal Synfuels Ltd (JSFL), a subsidiary of Jindal Steel & Power Ltd (JSPL).

In the draft MoU to be signed with the promoter, the industries department clarified that it is the responsibility of Odisha Industrial Infrastructure Development Corporation (Idco) to ensure that no such land is allotted for the project.

JSFL needs approximately 5000 acres for the CTL complex that will include an 1100 Mw captive power plant (CPP) and 50 million tonne per annum coal washery.

“JSFL would follow the Resettlement & Rehabilitation (R&R) policy of the state government and also take up periphery development works for the local area people in consultation with the district authorities. The company has to achieve financial closure within one year from the date of actual physical possession of two-thirds of required land,” the draft MoU stated.

Concerned at the instances of original promoters exiting their ventures especially in case of port projects, the government has incorporated a restrictive clause. This stipulates that JSFL promoters have to retain at least 51 per cent stake till three years from the start of commercial production of the project.

A host of milestones have to be achieved within three years from the date of MoU execution- finalisation of land and water assessment by state owned Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), securing prospecting licence for Ramchandi coal block allocated for the project, exploration of the coal block and commencement of land acquisition activities.

The draft MoU also lists out the activities to be taken up from the fourth to sixth year- continuation of land acquisition and R&R for balance land, applying for mining lease for the coal block, securing environment & forest clearances for the CTL project and obtaining consent to establish from the State Pollution Control Board (SPCB).

Since the project is proposed to be located close to the critically polluted industrial cluster of Angul-Talcher area, the SPCB may impose such conditions as may be necessary to ensure that the environmental quality of the area is not adversely affected and JSFL is required to adopt advanced pollution control technology and equipment.

JSFL needs to comply with all statutory guidelines and obligations on environment pertaining to the concerned Pollution Zone and create a green belt comprising one third portion of the plant area as per prevailing laws and rules of the Union ministry of environment and forest and such other law as may be applicable.

The state government has agreed to facilitate the company in obtaining all clearances including forest, environment and wildlife clearance from the Government of India.

JSFL has received the government nod for drawal of water from the Mahanadi river. The company would submit a detailed water management and utilisation plan for availing water from the river.

The project would have a capacity to produce 80,000 barrels per day. This includes 50,000-55,000 barrels of diesel per day, 20,000-25,000 barrels of naphtha and 4,000-6,000 barrels per day of LPG Direct and indirect employment is expected to be generated for 30,000 people.

First Published: Tue, September 17 2013. 20:18 IST