WORLD OF CRISIS

Nov 4, 2013

Investment committee to take up Rs. 35,000 cr stalled power projects: report

The Cabinet Committee on Investment (CCI), this week, is likely to take up two power projects worth over Rs. 35,000 crore that have been long stalled due to environmental hurdles. Power Ministry has sought CCI intervention on NHPC's Dibang project and Reliance Power's Tilaiya project. "CCI may take up these projects in this week's meeting," a source privy to the development said. The 3,000 MW Dibang hydro project has been stalled for a long time in the absence of environment and forest go-ahead.

The estimated cost of the project is over Rs. 15,000 crore. The CCI may decide whether private power producer Reliance Power's 4,000 MW ultra mega power project (UMPP) at Tilaiya in Jharkhand should be spared from the responsibility of providing non-forest land to compensate for the loss of forest land to be acquired for the project. At present, only the central government or public sector undertakings have exemption from the obligation to provide non-forest land under the Act. This is Reliance Power's third UMPP. The company is also executing two more UMPPs - Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh).

UMPP is a big-size coal-based power plant with at least 4,000 MW capacity and is built at an approximate cost of Rs. 20,000 crore. CCI, headed by Prime Minister Manmohan Singh, aims to fast-track major projects and help boost investor sentiment. Power Minister Jyotiraditya Scindia had earlier said that as many as 94 hydro power projects are languishing due to tardy progress at various levels in granting them Once approved, they can generate 37,000 MW electricity. Hydro power contributes 39,623 MW of the total 2,25,793 MW capacity in the country.

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