Clearances of Odisha power project coal blocks may be de-linked: report

The government may de-link forest clearance of coal blocks for 4,000-MW Odisha ultra-mega power project (UMPP) with the environmental clearance accorded to the entire plant, so that delay in development of mines does not affect the construction of the thermal station, according to a source close to the development.

This development comes after the Coal Ministry last week issued show-cause notice to Power Finance Corporation seeking explanation for delay in commencement of production from the allocated mines.

"MoEF (Ministry of Environment and Forests) is likely to de-link forest clearance of coal blocks for 4,000 MW Odisha UMPP with the environmental clearance accorded to the entire plant so that delay in development of mines does not affect the construction of the thermal station," the source said.

The Coal Ministry has also said that if these firms fail to give reasons for the delays it would be presumed that it has no explanation to offer and appropriate action will be taken against the company.

As many as nine companies have qualified the first bidding round for the Odisha UMPP and are likely to participate in the second and final round also.

NTPC, Tata Power, NHPC, Adani Power, JSW Energy, Jindal Power, an arm of Jindal Steel & Power, Sterlite

Infraventures, CLP India and Larsen & Toubro had submitted applications for the Odisha project.

Odisha UMPP is a pit-head power project. Based on domestic coal, to be sourced from allocated captive coal blocks, it is expected to cost around Rs 25,000 crore.