Jindal Power's expansion project gets thumbs up

India's Environment Ministry has given in-principle clearance for Naveen Jindal-led Jindal Power's US$2.9 billion expansion project in Raigad.

It paves the way for engineering and construction work to resume at the plant site in Chhattisgarh after a brief hold-up.

The ministry's approval is only for the first two 600-MW units under the expansion project -- which envisages capacity addition of 2,400 MW through the installation of four new 600 -MW powertrains at the Tamnar plant, in Gharghoda tehsil of Raigad district -- as coal linkages have already been granted by the Coal Ministry.

"Environmental clearance shall be applicable for 2x600-MW only. However, at a later stage, when firm coal linkage for the third and fourth unit of 600 MW are also available, the project proponent may request the ministry for inclusion of 2x600-MW, which the ministry may consider appropriately on merit," the ministry said on its website.

The Environment Ministry had withdrawn the preliminary environmental clearance accorded to the Tamnar power project in June, 2010, after certain quarters alleged that Jindal had not followed the Terms of Reference stipulated by the government while carrying out studies to assess the potential impact of the project on the environment.

As a fallout of the decision, Jindal Power was forced to halt all activities at the project site. However, following the in-principle approval accorded to the project by a panel of the Environment Ministry, the Naveen Jindal-led company can restart work on the plant, subject to fulfillment of certain conditions.

Among those stipulated by the ministry for the grant of final environmental clearance, the company has been asked to secure certain permissions from the Coal Ministry, as some of the plant area falls in coal-bearing area.