Jindal Power seeks clearance restoration for Rs 13k-cr project

“We are shocked and surprised at the action taken on us without giving an opportunity to our company to explain the factual position. The facts mentioned in your letter are not correct and we would like to clarify,” Jindal Power Director Anand Goel said in a letter to the Environment Ministry.

“We would request you to please look into the matter once again and give us an opportunity to present our case before the Expert Appraisal Committee as we have not changed the location of the expansion project and have only optimised the land usage,” he said in the letter dated June 24.

After giving the initial clearance or Terms of Reference (ToR) to the proposed 2400-MW project last year,the Union Environment and Forest Ministry had revoked it earlier this month,citing violation of green norms by the company. The proposed expansion project will entail an investment of Rs 13,410 crore.

A senior Jindal Power official confirmed writing the letter to the Environment Ministry and expressed hope that the company would be given an opportunity to present its case to the authorities concerned.

The Union Ministry,in its letter to the company on June 18,revoked the ToR for the proposed 2400MW coal-based power plant at Tamnar in Chhattisgarh by saying “the proposal for setting up the power plant is premature.¿ The company already runs a 1,000MW power plant there.

“It is also noted that setting up of the above power project in an area of 62 hectares is not possible. The ministry has not been informed of change in location for the proposed power project,” the Ministry said in its letter.

“It is found that the proposal for setting up of the 4X600MW power plant is premature as there is no area where the proposed plant can be set up. In view of the above,the Ministry hereby withdraws the letter dated March 31,2009,prescribing the terms of reference for the -4X600MW power project,” it added.

To this,Goel wrote,”We have not changed the location of the project. The land requirement has been optimised as per (a) point of TOR,which states ‘Land requirement for the project to be optimised¿’. We have optimised the use of land because of scarce availability of land in that area,and will now be setting up the expansion project (4X600 MW) in 456 hectares against 1,041 hectares as stated in TOR.”

“We would now put up the main plant of 4X600 MW in 115 hectares against 350 hectares proposed in the TOR,which is located on the southern side and contiguous to the existing plant. The plant location remains same as applied in the TOR,except that we reduced the land area,” he added.

The Union Ministry,in a separate letter to Chhattisgarh Environment Secretary on June 18,asked the state government to take action against Jindal Power for going ahead with the expansion project,which was reportedly in violation of certain norms.

“The team (of government officials) inspected the site on May 22,2010,and found that the JPL have gone ahead with the construction of power plant at the site where the ministry had earlier accorded environment clearance for the 4X250MW power plant. The construction of the power plant has been stopped,” the Ministry’s letter said.

“The regional officer of Chhattisgarh Environment Conservation Board had also inspected the site on February 22,2010 and found the construction of the power plant has been undertaken without prior permission of the competent authorities. Construction of the power project without obtaining prior environment clearance is in violation of the provisions of the Environmental lmpact Assessment Notification,2006,” it added.

“You are,therefore,requested to take action against the unit,invoking powers under Section 19 of the Environment (Protection) Act,1986,for commencing construction of the 4X600MW power project at Tamnar,without obtaining prior environment clearance,¿ the letter said.

Goel said that the company would take up the matter with the state government.

“In case there is a doubt that construction of expansion project has started,this may be delinked from TOR/ grant of EC. In this matter,you have already advised the state government to take necessary action under the Act. We will file our response with detailed justification to the state government in this matter,” he wrote.

Jindal Power said that over Rs 10,000 crore debt has been tied up for the project,besides placing order with BHEL for equipment worth Rs 765 crore.

“The Ministry of Coal,on recommendation of the Ministry of Power,has approved the linkage of coal for the first two units of 4X600 MW power plant on April 30,2010. The MoP has recommended grant of coal linkage subject to the condition that two units of 600 MW are commissioned during the 11th Plan Period,” Goel said in the letter.

“Our submission to you is that by withdrawing the TOR,no purpose is getting served,and the project will be delayed by more than six months. We have already submitted a request to the Minister of Environment and Forest in this regard vide our letter dated June 17,2010 for not withdrawing the TOR,” Goel said in the letter. The company was targeting to commission two units of 600 MW each out of the proposed 2400 MW before March 2012.

Jindal Power,which is gearing up to launch an Initial Public Offering later this year,has planned an investment of Rs 65,000 crore in the next 10 years for increasing its power production capacity. It currently runs a 1,000MW power project in Chhattisgarh.