Three coal blocks cleared to pave way for Orissa UMPP

Thursday, Jun 30, 2011,
By Rajesh Kumar Singh & Abhijit Roy Chowdhury,DNA

New Delhi:The environment ministry approved three coal blocks for a very large power plant in Orissa, paving the way for completing the process of inviting bids for the 4,000 megawatt project.

An additional three blocks were approved for two other power generation projects in the state, including a 1,600 mw plant by NTPC Ltd, according to a release on the website of the environment ministry signed by environment minister Jairam Ramesh.

Bids for the Orissa ultra mega power project, one of nine coal-fired plants with a capacity of 4,000 mw being built to expand access to electricity nationwide, were invited in June last year.

Deadlines for the bids were extended six times as environmental approval was awaited for mining the project’s coal blocks.

Approval for the coal blocks was given after the power ministry, NTPC and Orissa Power Generation Corp proposed to reduce the forest area that would be affected by mining.

All the power units that were allocated the six coal blocks will use supercritical technology, which will save carbon dioxide emissions.

The project builders are required to bear the cost of replanting an area equivalent to the forest land diverted for mining.

The last day for submitting bids for the Orissa ultra mega power project is August 1, according to a notice on the website of state-owned Power Finance Corporation, the agency handling the bids.

Orissa Power Generation is building a 1,320 mw plant, which has been allotted two coal blocks.

Five of the six blocks in the Ib Valley coalfield are in densely forested areas, in which the environment ministry prohibits mining. The ministry has begun to make exceptions recently as demand for coal outpaces supply and forces imports at higher prices.

Last week, the environment ministry overruled a panel’s recommendation to hold back approvals for three coal blocks in Chhattisgarh state, saying they were on the fringes of the bio-diversity rich Hasdeo-Arand forests.

A panel of ministers set up to consider mining in forest areas is scheduled to meet on July 14 and will likely discuss delayed projects of Reliance Power Ltd, Essar Power Ltd and the Aditya Birla Group, PTI reported on Wednesday.