The Rs 24,200-cr coastal project has run into trouble because of differing views on its threat to local ecology
The government’s attempt at reviving investor interest in its flagship Ultra Mega Power Projects (UMPP) scheme after a four-year lull is headed south – quite literally. One of the two such newly-announced projects in Cheyyur village, 96 kilometre south of Chennai in Tamil Nadu, has been engulfed in a controversy spanning economic, social and ecological domains. With the National Green Tribunal last month restraining the authorities from awarding the Rs 24,200 crore project, the future hints at a long-drawn battle between the protesting local inhabitants and the project proponent, Power Finance Corporation (PFC), which arranges clearances before such projects are bid out to companies.
A resident of Panaiyur Periakuppam in Kancheepuram has moved the National Green Tribunal here challenging the Environment Clearance (EC) awarded recently to the proposed 4,000 Megawatt Ultra Mega Power Project in Cheyyur belonging to the Power Finance Corporation by the Ministry of Environment and Forests (MoEF).
Prospective investors to the proposed 4,000 megawatt thermal power plant here witnessed a high-voltage angry exchange of words between the police, district officials and locals on a day that saw the villagers hoisting black flags on beaches and boats.
Wednesday began with lower-rung officials from the district administration visiting the villages at 6.30 am to persuade them not to stage protests during the visit.
After the villagers failed to budge, a team of police officers and revenue officials landed in the villages around 10 am and insisted that they remove all the black flags.
SUMMARYThe project award process, starting with the pre-application conference today, can revitalise the power sector
The power sector is suddenly brimming with newfound energy with the government clearing bidding norms that allow ‘pass through’ of the rise in fuel costs.
The process for awarding ultra mega power projects (UMPPs) is starting today with a pre-application conference for two projects of 4,000 MW each, in Odisha and Cheyyur, Tamil Nadu. According to the schedule fixed by the government, the projected dates for signing of power purchase agreements (PPAs) are March 27, 2014 for Odisha and March 28 for Cheyyur. The evaluation of the bids and the award of both the projects will be completed in February. If all goes as scheduled, the total number of UMPPs awarded would become six—four projects have been awarded since the UMPP initiative began in 2005-06. Read more…..http://www.financialexpress.com/news/-pass-through-test-begins-with-odisha-cheyyur-umpps/1182511/0