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Policy Issues Drag Chhattisgarh Ultra Mega Power Project

  • The dream for India's power sector started with a slogan: Power for all by 2012. Now it could just remain that – a dream. Delays in clearances have marred the government campaign. Now, the Chhattisgarh ultra mega power project (UMPP) may be scrapped if all the clearances are not in place by March next year.The dream for India's power sector started with a slogan: Power for all by 2012. Now it could just remain that – a dream. Delays in clearances have marred the government campaign. Now, the Chhattisgarh ultra mega power project (UMPP) may be scrapped if all the clearances are not in place by March next year.
  • NDTV has learnt that, government’s nodal agency for allocating ultra mega power projects, Power Finance Corporation, has extended the last day for bidding for Chhattisgarh UMPP for the sixth time. And now the new date for Request for qualification is March 5th next year.There is no progress in allocating any new mines for the Chhattisgarh UMPP, after Hasdeo-Arand coal blocks were allotted to the Sarguja UMPP were classified as "no-go" by the Environment Ministry. And as far as Hasdeo-Arand coal blocks are concerned, under the Central Electricity Regulatory Commission - CERC - guideline, the exploration at the coal blocks allotted for the UMPPs should start within 730 days and the deadlines for Chattisgarh UMPP coal blocks expires in March, 2012.
  • So, if the clearances for the coal and land meant for Chhattisgarh UMPP doesn't come in by March next year, then the whole existence of the UMPP may be in jeopardy.The problem is not just with the upcoming UMPPs. The ones that have been allocated UMPPs have several issues to. For example, private developers wanted to divert the coal from captive mines of UMPPs, for other projects. But the coal ministry is against any profiteering from captive mines. Now the PM himself is likely to call a meeting to sort all these issues.

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