The Orissa government has put three Independent Power Producers (IPPs) under scanner for their poor progress in setting up of projects in the state.
These three companies are Essar Power, Nava Bharat Power and Mahanadi Aban Power. The government intends to take a view on the future of these projects soon, sources said.
The government has also asked the project proponents to expedite land acquisition by March this year, falling which the water resources department will be requested not to grant the final water allocation to these projects.
The government is particularly taking serious view on the projects like Nava Bharat Power, who are not perusing the project seriously despite having coal block.
“The progress of some power projects has been very poor. Unless they achieve significant progress in the next couple of weeks, the government will be forced to take a strong decision on their continuance”, Pradeep Kumar Jena, secretary, energy department of Orissa government said.
Jena reviewed the progress of 15 IPPs including 7 IPPs who signed Memorandum of Understanding (MoU) with the state government way back in 2006 and eight companies who signed the MoU last year.
The progress report shows that Nav Bharat Power Ltd, which is planning to set up 1050 Mw power plant at Meramundali and Kharagprasad, is yet to acquire any land. The expenditure on the project till date is a paltry Rs 78 crore.
It required 1093 acres for the project including 88.47 acres of government land. It has now been told that if it fails to acquire 300 acres by March this year, the government may scrap its MoU with the company.
Similarly, Essar Power, planning a 1000 Mw power plant at Parang near Talcher in Angul district, is yet to start land acquisition. It required 1070 acre land including 300 acres of government land.
The land acquisition by Mahanadi Aban Power Company, setting up of 1050 Mw power plant at Tehranpur near Talcher in Angul district, is yet to start. However, the first two units of 600 mw each of Sterlite Energy, setting up 2400 Mw IPP at Burkhamunda near Jharsuguda, are expected to be commissioned during the current year. While the first unit will come up any time between March and May this year, the second unit is also likely to be commissioned by the end of the year.
Jindal India Thermal Power Ltd (JITPL), setting up of a 1200 Mw IPP at Derang near Talcher, is expected to commission its project by March 2013.With the sub-committee set up by the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) arriving at a solution to the tricky issue of land compensation, the meeting of the RPDAC will be convened soon.
The company has already acquired 1050 acre out of 1100 acres required for the project. If every thing goes well, full fledged construction can start within a month.
KVK Nilachal Power also is expected to start construction work for the 1050 Mw IPP at Kandarei near Athgarh by March 2010. It hopes to commission the plant by December 2012.
On the other hand, Visa Power, setting up a 1000 mw IPP at Brahmanbasta near Athgarh has been asked by the state government to aggressively pursue the land acquisition. The company is expected to get the coal linkage this month.
Tata Power, setting up of a 1000 Mw IPP at Marthapur-Naraj, is expected to start disbursement of money to the land losers soon. It hopes to acquire 400 acres by March and expects the environmental clearance by this time.
Jena said, among the companies who signed MoUs with the state government last year, the progress of Ind Baharat Energy has been highly satisfactory with the company expected to commission 700 Mw power plant by the third quarter of 2011.
Similarly, the first 50 Mw of Aarti Steel will be ready for commission after the statutory inspection and the remaining 450 Mw will be commissioned in next two and half years. The 4(1) notification for land acquisition in case of Sahara Power and Astaranga Power will be issued within a month.
The progress of Chambal Infrastructure and Ventures Ltd. (CIVL) has been a little slow with the 4 (1) notification expected by March this year. Jindal Steel and Power Ltd (JSPL) has applied to Ipicol for change of the site. Similarly, Kalinga Energy and Power and Visaka Thermal Power have been asked to change the locations.
