Company confident of winning coal blocks in future auctions, which would help restore the stalled power project
After a gap of almost two decades, Sanjiv Goenka-controlled CESC is reviving a 1,320-mega watt power plant planned on a riverine island. While the plant was kept idle for various reasons including inconsistent coal supply and a hostile business environment, it is now being restored as the group is now confident of winning coal blocks during future auctions.
Conceived in 1994, the Balagarh project was initially planned to generate 500 mw for which CESC completed acquisition of about 800 acres of land by 1998.
The plan got shelved despite getting funding approval from Asian Development Bank as the company then had reasoned it as a hostile environment consisting of factors like low upward revision in power tariffs and various objections raised by the state government against the nature of the project.
In 2010, Sanjeev Goenka tried to revive the project and the terms of reference (TOR) of the project was approved that year.
Even then the project failed to take off primarily due to lack of coal supply assurances, CESC told the ministry while applying again for environmental clearance now.
"Environmental monitoring was conducted by Mecon as per the TOR. The Environmental Impact Assessment report remained incomplete due to lack of firm coal linkage," CESC has told the ministry.
"CESC has invested substantial funds for the development of the project in land procurement, various studies, surveys, construction of infrastructure," the company said, adding that now about 902 acres of land, road and rail corridor is in possession.
The investment outlay for the project was envisaged at Rs 7,000 crore at the time of application for environmental clearance earlier while 56 million tonne is the requirement of coal for the plant.
The project is unique in the sense that it would come up on a char or an artificial estuarine island formed out of alluvial deposits. This means that there is no habitation in the island and no rehabilitation or resettlement issues envisaged though the island is being used for cultivation of various summer and winter crops, CESC has told the ministry.
"Given the highest population density in the country, it is almost impossible to find out 1,000 acres of land at a stretch free from habitation in West Bengal," the pre-feasibility report for the project says.
CESC has been operating 1,225 mw generation capacity of power for its Kolkata distribution business while another 600 mw capacity at Haldia in West Bengal and 600 mw at Chandrapur in Maharashtra have been recently built.
To secure its fuel security, CESC has retained its coal block Sarisatolli through aggressive bidding in the recently concluded auctions and would participate in future auctions also to make the Balagarh plant viable.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}