Jindal Power Tamnar expansion on hold

Jindal Power has been forced to put its proposal to expand capacity at its Tamnar project in Raigarh district of Chhattisgarh by 2400 mw on hold as it is yet to get clearance from the Ministry of Environment and Forests (MoEF).

The company currently has a 1,000 mw capacity at the site and wanted to add 4 units of 600 mw each.

According to a letter by the MoEF to the environment secretary of Chhattisgarh, Jindal Power had proposed to set up a 4 x 600 mw coal-based power plant at Tamnar in March 2009.

While the company was asked to submit an environment impact assessment study to the state pollution control board, Jindal Power, without waiting for the
approval from the government, started constructing its new plant at the same site where the 1,000 mw unit was operational.

An inspection team comprising members of the Chhattisgarh Environment Conservation Board, Central Pollution Control board and the MoEF has now stopped work at the site.

According to sources, the MoEF has withdrawn the terms of reference for the project, saying the required land for such a large project was not available at the site.

The ministry is likely to invoke Section 19 of the Environment Protection Act 1986.

The Jindal Power had raised Rs 10,000 crore from a consortium of 23 banks in April this year. It had also placed orders with Bharat Heavy Electricals for supply, erection and commissioning of the 4X600 mw boiler turbine generation package.

The company did not respond to a query sent by DNA Money on the issue. However, it is expected that the company will file a reply to the ministry in a day or two.

Jindal Power is a subsidiary of Jindal Steel & Power Ltd and JPL. It has signed an MoU with the Jharkhand government to set up a 2,640 mw thermal power plant.

In the hydro sector, Jindal Power has signed agreements for 6,100 mw projects in Arunachal Pradesh in joint venture with Hydro Power Development Corporation of Arunachal Pradesh.