Auction of Bedabahal power project deferred again

NEW DELHI: The power ministry has deferred auctioning of the Rs 17,000-crore Bedabahal ultra mega power project in Orissa for the fifth time due to lack of forest clearance to one captive coal block.

The project, which has attracted power majors such as NTPC, Tata Power, Reliance Industries, Larsen & Toubro and Essar Power, is already running eight months behind schedule.

“We have decided to extend the bidding deadlines by two more months to May 31. We expect that the situation would be clear by then,” a senior power ministry official said requesting anonymity. The delay is because of environment ministry’s pre-condition that it would grant environment clearance to the captive coal block provided NTPC and Orissa Power Generation Corp surrender their respective coal blocks located in the same region.

ET reported on March 11 that the power ministry had rejected the environment ministry’s pre-condition of shelving two coal mining projects as a trade-off for granting clearance to the Meenakshi coal block linked to the Bedabahal ultra mega power project. The two other blocks Dulanga and Manoharpur are held by NTPC and Orissa Power Generation.