Bhubaneswar: Nine months after Arcelor Mittal backed out of its proposed mega steel project in Keonjhar district, Sahara India Power Corporation Limited’s (SIPCL) proposed 1,320 MW power plant at Titlagarh in Bolangir district and a solar power project in Dhenkanal seem to plunge into uncertainty after Sahara Group chief Subrata Roy entangled in legal trouble.
Recently, the Supreme Court turned down a request by the group to release Roy from Tihar jail and keep him in house arrest or office arrest. Roy was sent to jail after the group failed to comply with the SC order to deposit investors’ Rs 20,000cr with the Securities and Exchange Board of India (SEBI).
Industry analysts observe, since the priority of the group would be to return depositors’ money, it will affect the group’s investment proposals in various sectors including those in Odisha.
“Certainly at this moment these legal developments will delay the Rs 8,000cr investment proposal made by Sahara group in power sector,” said Sahadev Sahu, an industry observer.
Things would be different, had the group been able to show some progress in plant related work at the site, he added.
Besides, the group’s withdrawal of its proposal from the SC in which it had assured to pay Rs 2,500 crore in cash for getting bail for Roy, has also forced the projects to hang in balance, Sahu stated.
On February 7, 2009 SIPCL had signed a memorandum of understanding (MoU) with the Odisha government for setting up of 1,320 MW (2x660) super critical unit at a cost of Rs 8,000 crore. The plant was supposed to commence in the first quarter of 2014.
It was agreed the green field unit which requires 950 acres of land, will be based on environmentally efficient supercritical technology and will operate with effluents of less than 50% of the limits fixed by the union ministry of environment and forests, an official at the Mines department said.
Meanwhile, the ruling government’s ‘pro-industry’ claim has drawn ire from the locals. They allege the government has failed to adequately compensate the to be displaced.
“If the government can go ahead with Posco, why not the mega project in our area,” standing MLA of Titlagarh Surendra Singh Bhoi asked.
“The lackadaisical approach of the state government towards the project has forced it to miss the operation deadline,” he rued.
An official at the Mines department however maintained that land acquisition was not possible over a period of time due to local resentment.
The land acquisition process has become a major challenge for the state-owned Industrial Infrastructure Corporation Limited (IDCO) which has been entrusted the task.
“Though the group has deposited about Rs 30 crore with IDCO for land acquisition, the process is yet to complete due to resistance by locals,” he said wishing anonymity.
A year prior to the Titlagarh proposal, the company in 2008 had entered into an in-principle agreement with the state government to invest in a solar-based power project in Dhenkanal district.
Though the amount of investment was not revealed then, it could be around Rs1,500-Rs2,000cr, he stated, adding the solar project has also met a similar fate that of the thermal unit.