The state government will be acquiring a total of 1,400 hectares of agriculture and forest land for proposed 4,000-Mw ultra mega power project in Sidhi district of Madhya Pradesh. |
However, the Power Finance Corporation subsidiary Sasan Power Limited, a shell company for executing the project, will be allotted a land area of 1,400 hectares of land only on certain conditions. |
The company will have to offer at least one job to the farmer families who will lose their land to the project. |
"The state government does not have land in Sidhi and hence private land of market value of Rs 98 crore will be acquired for the purpose," a government source told Business Standard. |
An area of 915.79 hectare and another area of 427.67 hectare will be acquired on behalf of Sasan Power. An area of 100 hectare is forest land, which requires the necessary permission. |
"A clearance has been given by the state Cabinet in this regard," said the official. |
The state will reportedly share 2,000 Mw of power from the Rs 15,000 crore project. The company had demanded land in five villages namely Sidhikala, Harhawa, Sasan,Garhara and Sidhikund. |
State government has cleared the proposal to acquire land for the project on the condition that the company will deposit 10 per cent of the total cost of land on prevailing market rates to award compensation and another 10 per cent for administrative expense. |
In general, the government acquires land after the promoter of the project deposits 80 per cent of the total cost of the land. |
Further the company will have to follow the rehabilitation policy determined by the state government and the Narmada Valley Development Authority "" a state government entity. |
The project will be executed through bidders on a build, own and operate basis. Also the company will have to lay a pipeline to lift 150 cusec (the demand is 190 cusec) water from the Rihand reservoir at its own cost. |
The Sasan power project will be a pit head plant and coal. Singrauli coal mines, which has proven coal reserves of 4,726 million tones of coal, will feed the plant. |
The selection of developers and transfer of the special purpose vehicle will be completed by December this year. As many as 22 private firms have reportedly shown interest in the project. |