The Central Government is likely to delink forest clearance of coal blocks for the 4,000-MW Odisha UMPPs (ultra mega power projects) with the environmental clearance accorded to the entire plant so that the delay in development of mines does not affect the construction of the thermal station.
This development has come after the Coal Ministry last week issuing a showcause notice to the Power Finance Corporation seeking explanation for the delay in commencement of production from the allocated mines.
The Coal Ministry has said that if these firms fail to give reasons for the delays, it would be presumed that they have no explanation to offer and appropriate action would be taken against them.
As many as nine companies have qualified the first bidding round for the UMPPs 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 and Power), Sterlite Infraventures,
ClP India and l&T had submitted applications for the projects. 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.