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Green hurdles stall Gujarat power projects

As many as five major Gujarat-based projects are languishing for want of environmental clearance from the Union ministry of environment and forests (Moef).

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As many as five major Gujarat-based projects are languishing for want of environmental clearance from the Union ministry of environment and forests (Moef).

According to senior officials in state environment and forest department, the list includes Rs17,000-crore ultra mega power project (UMPP) by Tata at Mundra, three special economic zones, and the RO-RO ferry service project near Bhavnagar.

The cost of all these projects put together would exceed Rs50,000 crore. According to state government officials, all these projects are crucial ones and MoUs for them were signed during the Vibrant Gujarat Investors’ Summit 2009.

“The process of obtaining the clearance is painfully long drawn. It can be more than two years for the final clearance,” the official added.

Adani Group’s Mundra power project recently got the required permission from the central ministry, according to the official.

According to officials, Tatas have already started mobilising the resources for the UMPP. “Tata Power announced the completion of signing of financial agreements for the 4,000 mw ultra mega power project at Mundra under the special purpose vehicle (SPV), Coastal Gujarat Power (CGPL), some time back,” said an official close to the development. The cost of the project is estimated at Rs17,000 crore with the first of the five units to be commissioned in September 2011. The entire plant is expected to be commissioned by end of 2012.

In its recent statement the Union environment ministry said: “There are two special economic zone (SEZ) projects awaiting environment clearance from Gujarat. For the first project of SEZ at Dahej, site map indicating areas falling under Coastal Regulation Zone is awaited from the project proponent.

In the case of the second ‘PhaEZ Park’ SEZ project, the proposal is included for discussion in its Expert Appraisal Committee for New Construction Projects and Industrial Estates meeting scheduled to be held in August 2009.”

Dahej SEZ at village Dahej, Bharuch is being developed jointly by state-owned Gujarat Industrial Development Corporation (GIDC) and ONGC. Similarly, roll-on-roll-off ferry service to be started by Gujarat Maritime Board (GMB) is also seeking Union government nod.

On the other hand, PhaEZ Park at Dhanduka in Ahmedabad is being developed by CPL Infrastructure Ltd. In addition, Sterling SEZ, which had signed a MoU with state government for Rs17,500 crore for expansion of the existing economic region, is another major project from Gujarat.

According to a top official of GMB, “The companies carrying out development activities especially close to coastal areas now start seeking environmental clearance well in advance as they all realise that nothing could hasten the process.”
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