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Rediff.com  » Business » Anil project pushes Neyveli Lignite out of Hirma

Anil project pushes Neyveli Lignite out of Hirma

July 27, 2006 12:45 IST

Anil Dhirubhai Ambani Group's proposal to build a 12,000-Mw power plant at Hirma in Jharsuguda district of Orissa has forced Neyveli Lignite Corporation to look for alternative sites for its proposed 2,000-Mw thermal power project.

NLC intended to set up a coal-based thermal power plant at Hirma, close to the coal deposits in IB Valley in western Orissa, at an estimated cost of Rs 9,000 crore. The plant was to be set up in partnership with Mahanadi Coalfields Ltd.

However, according to sources, the state government has now asked the public sector company to look for alternative sites following R-ADAG's announcement of its Rs 60,000-crore (Rs 600 billion) mega power project in the same location.

Meanwhile, NLC had identified Rengall village in Sambalpur district as the new site and was currently collecting land details, the sources added.

Anil Ambani lines up Rs 61,500 cr for Orissa

A memorandum of understanding will be signed with the Orissa government and work will start on the project once the land details are settled.

According to an energy department official, an NLC team is expected to visit the state next week for signing of the MoU.

The project's annual coal requirement is estimated to be 11-12 million tonnes. The Talabira II and III coal blocks have been allocated for joint mining by NLC, MCL and Hindalco for the same. The Central Electricity Authority has already tentatively allocated power from the project to Orissa and western India.

The project is expected to generate power in the 11th Plan period. An advance action plan for preparing the feasibility report, environment report and survey work is under implementation.

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