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The Cabinet Committee on Investment has asked the Power Ministry to come out with a clear policy on land acquisition for ultra mega power projects .
This request comes in the backdrop of the Anil Ambani Group Reliance Power’s move to acquire land for its 3,960-MW Tilaiya project.
The project, which was to have been commissioned in 2012, will now get further delayed.
Last week, the Prime Minister-headed panel discussed the land issue with the Power Ministry and directed the latter to come out with a proposal suggesting changes in the existing UMPP norms, a Senior Government official told Business Line .
At the meeting, the Power Ministry wanted the investment panel to advise the Ministry of Environment and Forests to treat all UMPPs as Central Government Undertaking projects as far as compensatory afforestation was concerned.
This would mean that it will not be mandatory for the UMPP developer to provide non-forest land to compensate for the forest land acquired for the power station. The developer can deposit the cost of the land with the State Government, governed by the Forest Conservation Act – a benefit currently available only for Central Government or public sector undertakings.
But, the Environment Ministry is against this proposal. It argued that the Tilaiya project, being a fully-owned subsidiary of Reliance Power, should not be treated as a Central Government Undertaking for the purpose of the compensatory afforestation.
Any move to ease rules to exempt the Tilaiya UMPP from providing non-forest land may result in adverse observation by the audit. It may also be challenged before the National Green Tribunal or Supreme Court or any other court, the Ministry informed the Cabinet committee.
Reliance Power had bagged the project on August 7, 2009 at the average tariff of Rs 1.77 a unit. According to the UMPP model, the Government is obliged to extend all support for expeditious clearances. In fact, the zero date of contractual obligations starts with the handing over of land for main plant area.
Out of about 2,413 acres , 470 acres of private land has been handed over to the project. About 855 acres of Government land and about 1,220 acres of forest land have yet to be handed over by the Jharkhand Government.
Stage I&II clearances for diversion of forest land were received on February 3, 2010 and November 15, 2010, respectively. However, the State Government has yet to approve the transfer of possession of land to the project.
siddhartha.s@thehindu.co.in
amiti.sen@thehindu.co.in
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