Power project caught in Rane-Shinde crossfire

MUMBAI: A proposed mega power plant in the Konkan region has triggered a controversy involving two powerful politicians in the Congress, at a time when the state is reeling under a severe power shortage.

The proposed 4000-MW ultra-mega power project at Girye in Sindhudurg district has run into trouble with Union energy minister Sushilkumar Shinde and Maharashtra revenue minister Narayan Rane taking contradictory positions.

Recently, Mr Shinde promised to shift the project, on farmers��� demand. This alarmed Mr Rane ��� the guardian minister for Sindhudurg district and Congress��� biggest bet in the Konkan region ��� who wants to put the project again on the government radar. Last week, Mr Rane brought opponents of the project and government officials together for a meeting at the Mantralaya.

Mr Rane strongly justified the project and its location in the district which, he claimed, would help improve the socio-economic profile of the backward region. Mr Rane, as the guardian minister, made a strong case for the project again during his Republic Day address at the district headquarters.

The Girye project is one of the five such plants, which together are estimated to add 20,000 MW to the national installed capacity under the Union government���s ���power to all��� programme.

The five projects are being developed by the Union ministry of power, Central Electricity Authority, and Power Finance Corporation through a tariff-based competitive bidding route. Projects would be awarded to developers on a build, own, and operate (BOO) basis.

���In order to enhance investors��� confidence and generate good response to competitive bidding, five shell companies have been set up as wholly-owned subsidiaries of Power Finance Corporation. These companies would facilitate tie-up of inputs, coal linkages, and clearances for the projects,��� a state energy official said.

For the Girye project, a special purpose vehicle called Coastal Maharashtra Mega Power Limited has been formed. Around 4,500 acres of land in the Sindhudurg district has been identified for the project on the basis of a report submitted by the National Remote Sensing Agency, Hyderabad, sources said.

���Around 3,500 acres of this is barren land without any forest and with a very thin human habitation. The remaining 1,000 acres have been identified for developing port facilities,��� a state government official said.

Opposition to the project has come from mango and cashew nut farmers and fishermen in the district. Farmers claim that the ash generated from burning coal would adversely impact orchards in the horticulture-rich region.

Farmers have also formed an action committee to voice their protest and demand that the project be shifted. ���It���s an irrational claim. Coal for the project is going to be imported and it would be of a very high quality.

Around 15 million tonnes per annum of coal is proposed to be imported. As compared to local low-quality coal which creates a lot of ash, the imported coal would not contribute to pollution. So, the fear that it would lead to ecological pollution and impact orchards is unfounded. The site is in coastal area and the project would have a negligible impact on environment,��� an official said.

abhiram.ghadyalpatil@timesgroup.com