Land for power project issue still hangs in balance | india | Hindustan Times
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Land for power project issue still hangs in balance

Vilasrao admitted to lack of coordination between the two govt departments who allotted same land to TPC and REL, reports Dharmendra Jore.

india Updated: Feb 13, 2007 00:33 IST

Chief Minister Vilasrao Deshmukh admitted to lack of coordination between the two government departments who allotted same land to generation companies Tata Power Company (TPC) and Reliance Energy Ltd (REL) for constructing mega power projects in Shahpur near Alibag in Raigad district.

Deshmukh met officials from both companies separately on Monday but was unable to find a solution. He is reported to have asked respective secretaries to study the matter further. He also asked both companies to cooperate. Deshmukh wasn’t available for comment but his office told HT that the matter still hanged in balance.

However, TPC spokesperson said REL was asked to back track. In reply, REL spokesperson wanted TPC to produce a proof to the effect. "What CM asked us was to cooperate," he said.

One of the senior officials informed that CM wondered how the lack of coordination between the two departments could create such a mess when the state was in dire need of extra electricity.

The CM said this when Tata and REL officials told him that they independently approached Revenue (REL) and Maharashtra Industrial Development Corporation (Tata) for acquiring the land.

The power plants are crucial for state facing power shortfall of over 5,500MW. Both plants would together generate 5600MW within next four years.

The bone of contention between the companies is overlapping of 1000 acres of land to be acquired for their respective thermal power projects. REL says the revenue and forest department agreed in principal to allot about 3490 acres under the Land Acquisition Act 1894 but is now surprised to know that some 1000 acres of it has gone to TPC. REL will generate gas-based 2800MW. The remaining would be coal-based.