SC ruling a setback for power projects in Santhal Pargana

Dumka: Two highly ambitious power projects in Santhal Pargana are likely to suffer owing to the Supreme Court on Monday declaring allocations of all the 218 coal blocks made since 1993 as “illegal and arbitrary”.
The fate of two power projects — including those of Jindal Steel and Power Limited (JSPL) and Calcutta Electric Supply Company (CESC) — proposed to be set up in Godda and Dumka district and the coal blocks allocated to them fall under the ambit of the SC ruling.The two projects have already been significantly delayed.
While JSPL was awarded the 500-acre Jitpur coal block in Sunderpahari block of Godda district to feed the proposed power plant, CESC got Mahuagarhi coal block in Dumka district for its 600 MW power plant. The fate of both hang in balance until September 1, the date fixed by the Supreme Court for further legal recourse on coal blocks. Apart from contributing to the power generation, both these power plants were seen as a boost for the region’s economy as investments of thousands of crores of rupees were to be made by these power giants.
Both the companies have been facing a difficult time in executing its projects owing to the prevailing hindrances in land acquisition processes and other issues concerned with the Union and state governments. The period of coal block allocation extends up to four years if the company concerned fails to start excavation, but owing to the prevailing hindrances these companies had to face it was further extended.
The enforcement of new land acquisition act of the central government, which envisaged payment of higher rate of compensation to the land losers and introduction of social impact assessment (SIA), proved to be yet another stumbling block for these companies as the state government is yet to come with a guideline.
Most importantly, President Pranab Mukherjee had laid the foundation of JSPL’s Godda power plant last year and it was believed that the project would soon kick-start. As of now when September 1 is fixed the date of further hearing on the matter of whether to cancel the coal block allocations the management of these companies are eying on the union government to impress upon the court for a mild stand.
“At this point of time we are not supposed to make any comment on the fate of the coal block or for that matter the power project but we are optimistic that court would definitely consider the intensity of the jolt country’s economy will otherwise face due to de-allocation of coal blocks” opined S K Prasad, president of the Godda JSPL project.