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Allow power projects in rural areas: Centre
The Centre has advised states to allow construction in power projects outside municipal limits during the lockdown. It comes following the ministry of home affairs’
The Centre has advised states to allow construction in power projects outside municipal limits during the lockdown. It comes following the ministry of home affairs’ guidelines on activities exempted from the extended lockdown till May 3.
The sector has been under stress since the lockdown with a dip of 30% in demand for power due to absence of commercial activity.
The Centre also directed Coal India Limited (CIL) to stick to its coal offtake target at 710 million tonnes (MT) for this fiscal.
Union minister for coal Pralhad Joshi held a meeting Wednesday to set the performance targets for the state-run company keeping in mind the roadmap for a post-lockdown scenario, officials said. “The demand of coal will pick up again after coronavirus lockdown, so I have directed CIL to keep the production and offtake targets at 710 MT for financial year 2020-21 in line with its goal to achieve 1 billion tonne coal production by year 2023-24.” Pralhad Joshi said on Thursday.
Railways freight loading for coal, one of its prime commodities, has dipped since the lockdown. Its earnings for coal and coke dipped by 48.25% to 1,880.61 crore, since the lockdown.
In the letter written to the states, union territories, District Magistrates and police authorities, the power ministry said, “As per MHA’s guidelines, construction of all kinds of industrial projects in rural areas, i.e., outside the limits of municipal corporations and municipalities have been allowed to be carried out with effect from 20th April, 2020. This is also applicable for ongoing construction activities in Thermal/Hydro Power Generation Projects outside the limits of Urban Local Bodies (ULBs).”
On April 15, the home ministry had allowed continuation of works in construction projects, within the limits of municipal corporations and municipalities, where workers are available on site and no workers are required to be brought from outside from April 20 onwards. “However, these additional activities will be operationalised by states/union territories/district administrations based on strict compliance to the existing guidelines on lockdown measures,” the guidelines had said.
Movement of all personnel travelling to place of work and back in the exempted categories as per the instructions of the state/union territory were also allowed.
The power ministry has also requested to allow the intrastate and interstate movement of construction materials, equipment, spare parts and consumables for these under construction power projects.
“It has been emphasised that resumption of project works at sites may be carried out while taking all mandatory precautions and norms of social distancing as well the advisories issued by the Ministry of Home Affairs and Ministry of Health and Family welfare from time to time with regard to Covid-19,” the ministry said in a statement Thursday.
The home ministry had, in a fresh set of guidelines, added exemptions including activities in farming/plantation, construction and banking sectors. Construction activities in rural areas, water supply, sanitation, and laying of power, telecom lines were also exempted from the lockdown.
“The economic costs of the lockdown are rising each passing day with the impact being felt across sectors. The situation requires immediate, across the board intervention from the government.
Under lockdown, economic activity has slowed down significantly across most sectors. In manufacturing, only food processing, pharmaceuticals and medical equipment are operational, while construction and mining activities have halted completely. Within services, majority of trade, transportation and hospitality remains closed, while financial, IT and government services remain partially operational. Even in power sector which can operate, significant reduction in demand owing to lockdown is having an adverse impact,” said Chandrajit Banerjee, Director General, Confederation of Indian Industry. “Commercial power tariffs remain high in India, further affecting industry’s competitiveness. Further, the state power distribution companies are running at huge losses. Taking forward the reforms and privatization of the Discoms is necessary.”
