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Our Bureau

Tata Steel and NLC projects also get approval

Chennai, May 27 The Tamil Nadu Cabinet, which met on Saturday, gave its approval for a Special Economic Zone of Future Energy Zone India Ltd (FEZ).

The Rs 1,300-crore SEZ will house units that manufacture equipment for power plants based on non-conventional energy sources.

Future Energy Zone is a special purpose vehicle set up by Malavalli Power Plant. The Mumbai-based Kamala group is the co-investor in the project.

A press release from the State Government says that the Tamil Nadu Energy Development Agency (TEDA) will be given 1 per cent equity stake in FEZ.

It says that the project will provide direct employment to 5,000 people and indirect employment to an equal number.

Other projects

The Cabinet also cleared two other projects — the Rs 2,500-cr titanium dioxide project of Tata Steel and a coal-bed methane exploration project of Neyveli Lignite Corporation.

Tata Steel had already signed a MoU with the previous Government in the State.

But after the DMK Government took charge, the project was one of those that came up for re-appraisal. Today's announcement effectively gives the present Government's approval for the project.

However, the basic issue facing the project still remains — land acquisition.

The project, for mining of titanium and manufacture of products based on the metal, needs about 6,000 acres, which the State Government has to acquire.

Sources in Tata Steel told Business Line today that the feasibility study for the project was over and the company was ready to take up the project once the Government handed over the land.

Preliminary stage

The coal-bed methane project of NLC was at a preliminary stage, senior officials of the company said.

Lignite seams in the Mannargudi district in Tamil Nadu are deep-seated, located at about 500 metres below the surface.

Comparatively, lignite in NLC's mines are found not deeper than 150 metres.

As such, it is not possible to open-cast mine the lignite in the region.

The only way to exploit the resource is to extract the methane gas embedded in the seams.

NLC has been talking of this project for at least five years now, but today's approval will enable the company to get on with feasibility studies.

The Government press release says the profits from the project will be shared between NLC and the Government.

Sources in the company said that it was too early to give an estimate of the investment needed for the project.

Buildings' case

The release also says that the Cabinet has decided to appeal afresh to the Supreme Court asking the apex court to reconsider its decision asking the Government to demolish the buildings built without the approval of the Chennai Metropolitan Development Authority. Because of the SC order, about 75,000 constructions are in danger of being demolished, the release says.

More Stories on : Non-conventional Energy | Policy | Steel | Power | Tata Steel Ltd | Tamil Nadu

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