Wednesday, February 11, 2009

Activists oppose nuclear, thermal plants in Konkan

Activists oppose nuclear, thermal plants in Konkan | Sindh Today
Activists oppose nuclear, thermal plants in Konkan
Feb 10th, 2009 | By Sindh Today | Category: India

Panaji, Feb 10 (IANS) The Save Western Ghats (SWG) movement, comprising of environmentalists and nature-lovers from throughout the country, has decided to form an action plan to oppose the setting up of thermal power plants and a nuclear power-plant along the Konkan coast.

The decision was taken following SWG’s national consultative workshop attended by over 100 delegates from seven states. The workshop was also attended by international delegates from Japan, Holland and Britain.

“We have decided to prepare a ‘State of the Western Ghats’ report, which will analyse the health of the environment in the Sahyadri region. We will also hold a series of meetings in the Western Ghat’s hotspots, where the ecological balance is likely to be threatened with the proposed developmental projects,” Kumar Kalanand Mani, one of the organisers of the SWG movement, told reporters late Tuesday.

“We will oppose the setting up of thermal power plants in the Raigad, Ratnagiri and Sindhudurg regions of the Konkan and the nuclear power plant at Jaitapur,” he said.

Jayant Parulekar, who represents the SWG in the Konkan region, told IANS that the thermal power projects, which were proposed to salvage the deteriorating power scenario in Maharashtra, would severely affect the ecological balance of the Western Ghats, regarded as a prime ecological hotspot in the world.

“It is feared that the thermal plants would generate nearly 100,000-tonne fly ash every day, which will virtually choke the Western Ghats,” Parulekar said.

He warned that with the setting up of a nuclear plant in Jaitapur in Maharashtra and with the already existing nuclear plant at Kaiga in northern Karnataka, Goa would be right in the middle of a nuclear sandwich.

“Despite the best of precautions, the Chernobyl fiasco happened. With the setting up of the Jaitapur nuclear plant, Goa would be virtually nuclear-sandwiched,” Parulekar said.

Pandurang Hegde, founder of the Appiko movement, which is the southern equivalent of the Chipko movement in the Himalayas, said with the rapidly melting Himalayan glaciers, the Sahyadris would in the near future be the only cushion against global warming.

“Protecting the Sahyadris is no longer an option. It is now a compulsion,” he said.

The Western Ghats are spread over a 1,600 km narrow strip of land on the western coast of India stretching from Dhule in Maharashtra right up to Kanyakumari in Tamil Nadu.

The SWG first shot into focus when a group of 3,000 green activists marched through the length of the Western Ghats in 1988 creating awareness about preserving the region.


Thursday, January 29, 2009

JSW to snap ties with Maytas, cancel two township contracts

Printed from


JSW to snap ties with Maytas, cancel two township contracts
28 Jan 2009, 2209 hrs IST, PTI

MUMBAI: Sajjan Jindal-led JSW Group today said it would cancel the Rs 96-crore township project given to Maytas Infra, a company run by the
family of tainted Satyam founder Ramalinga Raju.

"We will change the contractor (Maytas Infra) for our two projects -- Ratnagiri in Maharashtra and Vijayanagar in Karnataka," JSW Steel Vice-Chairman and Managing Director Sajjan Jindal told reporters here.

The diversified conglomerate said it would not like to do business with a company involved in a "scam".

"We would not like to do business with a company that is involved in any scam. There is no one in that company anymore to whom we can complain in case of a slowdown (in work). So (it is) better to change the contractor," Jindal said.

The decision to cancel the contracts comes barely a fortnight after the JSW Group expressed confidence in the beleaguered firm and said it was "happy" with the progress on the projects.

JSW Group had given the Rs 53.60 crore order to build a township at Vijaynagar in Karnataka in September 2007, by way of competitive bidding, to the infrastructure company. Maytas Infrastructure bagged another order worth Rs 42.91 crore to construct the township in Ratnagiri in August 2008.

For the Ratnagiri project, JSW did not pay any advance while for the twonship contract in Karnataka it has paid less than the work done by Maytas, he said.

"One contract which is for our energy company at Ratnagiri has not started and we have not made any payment. They (Maytas) had not even given the bank guarantee and unless they give a bank guarantee we can not pay them advance," he said.

"For the township project in Vijayanagar, advances paid by us are less than the work Maytas has done," he said.

Monday, January 26, 2009

JSW to examine ties with Maytas


Indian Express
Priyadarshi Siddhanta Posted online: Jan 27, 2009 at 0119 hrs

New Delhi : Barely days after the Orissa government decided to put activities of beleaguered IT giant Satyam’s infrastructure arm Maytas Infra under the scanner, Sajjan Jindal-promoted JSW has now decided “to review” its ties with the company in view of various reports about the company in the media.

Maytas had bagged orders worth about Rs 100 crore to build two townships for employees of JSW Steel in Vijaynagar (Karnataka) and for JSW Energy worth Rs 53.60 crore and at Ratnagiri (Maharashtra) worth Rs 42.90 crore. “In view of the reports coming in about Maytas, we intend to review our ties with it next week,” JSW Group chief financial officer and JSW Steel director (finance) Seshagiri Rao told The Indian Express. Reports say Maytas had completed about 35 per cent work in Vijayanagar, where JSW Steel is expanding its capacity to 7 MTPA. In Ratnagiri the group has a 1,200 MW power project. The project in Vijayanagar was awarded to Maytas in September 2007 after competitive bidding.

The Naveen Pattnaik government in Orissa too has asked KVK Nilachal Power company to make it clear by next week whether it wants to continue to partner with Maytas Infra or would go alone on developing the 1,200 MW power project in Cuttack district of the coastal state. The state has also asked the firm to spell out in detail on how it intends to raise the money for the same if it preferred to go alone.

“We had extensive interactions with representatives of KVK Nilachal Company here (Bhubaneswar) yesterday and asked them whether they wanted to continue with Maytas in developing the power project or would they prefer to go alone. In either case they will have to spell out the ways through which they intend to raise resources for executing the project,” Orissa energy secretary P K Jena had said. According to reports emanating from Orissa, KVK Nilachal is not averse to going alone on the project in case Maytas was out of it. “They (KVK Nilachal) said they will have express deliberations with Maytas officials and let us know by next week,” he pointed out. Maytas is hogging the limelight as never before and recently its CEO P K Madhav quit the company recently in view of his attention and energy being used to address the legal matters pertaining to the Nagarjuna Finance case.

Source: http://www.indianexpress.com/story_print.php?storyid=415546

Friday, January 23, 2009

New CERC guidelines gladden power generators

domain-b.com : New CERC guidelines gladden power generators
New CERC guidelines gladden power generators news
22 January 2009

To the approval of the power generation industry, the Central Electricity Regulatory Committee (CERC) has issued a new notification that deals with the tariff computation for the years 2009-10 to 2013-14.

The new rules increase the return on equity for the period between 2009 and 2014 from 14 per cent to 15.5 per cent. The enhanced returns for generation companies would flow directly to the bottom line, as tariffs for power generation and transmission companies are fixed based on the sum of certain specified fixed and variable costs, to which the permissible return on equity is added.

In addition, projects that are completed on time will get an extra incentive of 50 basis points, or 16 per cent ROE. However, the regulation that only 30 per cent of the capital cost of a project may be funded by equity remains unchanged. The rest has to be funded by debt.

Under the new norms, the depreciation rate goes up to 5.28 per cent from the earlier 3.6 per cent, which will improve generating companies' top lines as well.

The irritating 'advance against depreciation' (AAD) clause has also been removed. AAD was introduced mainly to ensure that higher fixed costs are recovered in the earlier years so as to enable the project developer to repay loans.

In a move to encourage efficiency, fixed cost recovery would now be based on 85 per cent plant availability factor (PAF), as against the earlier 80 per cent plant load factor (PLF). The latter is an indication of demand, which is generally not within the control of the producer.

Though these steps will bring immediate benefit only companies that are subject to CERC, there may also be indirect benefits to private players in the future, as state governments will tend to follow the central guidelines. However, each state has a different timeline for this - Maharashtra's is 2009-10, while Gujarat is aiming at 2010-11.

The immediate beneficiaries would be the National Thermal Power Corp, Neyveli Lignite Corp, and Powergrid Corp. Prasanna Kumar, chairman and managing director of Neyveli, said in a TV interview that profits will increase and there will be incentive for generators to produce more power. He sees additional profit for future projects at Rs 32.5 crore, and is of the view that the additional depreciation will not impact bottomlines.

Sanjiv Goenka of the Calcutta Electric Supply Corp (CESC), an RPG group company, said that the CERC guidelines are equally good for private companies and it is up to state regulators to implement them.

Wednesday, January 21, 2009

NPCIL-NTPC joint venture idea for nuclear power

AEC endorses NPCIL-NTPC joint venture idea for nuclear power

State-owned Nuclear Power Corporation and NTPC have moved a step closer towards setting up a joint venture for nuclear power production, with Atomic Energy Commission (AEC) endorsing the idea of synergy between the two.

"NTPC and Nuclear Power Corporation of India Ltd (NPCIL) had already signed an MOU late last year for the joint venture with a holding of 51 per cent by NPCIL and 49 per cent by NTPC. The joint venture proposal of these two undertakings was taken up for discussion on Monday by AEC which endorsed the idea," sources told PTI.

If India has to speed up the nuclear capacity to its ambitious target of 60,000 MW by 2030, it was important to take advantage of vast experience of NTPC, predominantly engaged in thermal power production, sources said.

"With nuclear expertise of NPCIL and NTPC's experience in power production, a long-term perspective of the synergy was favourably considered by the AEC," they said.

The AEC will deliberate upon the proposal in due course to work out details of terms and conditions, safeguards and other issues for the smooth functioning of the joint venture.

After working out the details, the proposal will go for cabinet approval and once approved, this will be the first joint venture to set up nuclear power plants in India.

NTPC has a good track record of producing over 27,000 MW of thermal power using mostly coal, and is in an advantageous position in terms of distribution and transmission of power and a wide networking with state electricity boards, sources said.

At present, 17 nuclear plants are run by NPCIL, an undertaking under the Department of Atomic Energy.

NPCIL has nuclear power plants at Tarapur (Maharashtra), Kakrapar (Gujarat), Kaiga (Karnataka), Kalpakkam (Tamil Nadu), Kota (Rajasthan) and Narora (Uttar Pradesh) with a total capacity of 4120 MW and with six more plants under advanced stages of completion, it would go up to 7280 MW in the next year. Experts feel that if the JV is approved by the Centre, it would pave the way for private sector in nuclear power generation.

However, it is unlikely for private sector to enter this area, at least in the next five to six years as it required amendments in Indian Atomic energy Act besides working out nitty-gritties of the 123 agreement and India specific safeguards agreements with IAEA.

Already companies like Larsen and Toubro (L&T), Tata Power, Reliance Infrastructure, GMR, Jindal group, Hindujas, BHEL have evinced interest in setting up nuclear power plants.

Also, last week, US power major Westinghouse signed an MoU with L&T for fabrication and construction of a nuclear reactor in India. L&T is already supplying critical components for the construction of nuclear power plants to NPCIL besides providing civil work.

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Sunday, January 18, 2009

People Power troubles Athena Power in Chhattisgarh

Sat Jan 17, 2009 8:05 am (PST)

In a major set back to Hyderabad-based Athena Power Projects (APPL)
public hearing had to be cancelled midway on 15th January due to
strong people agitation.

Athena Chhattisgarh Power Pvt. Ltd signed MoU with Chhattisgarh
Government to set up 1200 MW Coal based TPP with investment around
six thousand crore INR. Company decided to set up plant in Raigarh
district but due to agitation and demand of high price for land they
had to shift in another District Janjgir-Champa. Accordingly Public
Hearing was organized in village Singhitarai of Tehasil Dabhara.

Thousand of men & women from nearby villages approached at the venue
shouting and banners posters in hand "No information No hearing"
"Need land but No Company".

As usual administration did nothing to know the people about hearing
and EIA reports were not made available to Panchayats. Venue too was
fixed at remote place about 2-3 KM inside from main road. Due to
unanimously strong protest and procedural lapses raised by activists
of 'Jan Chetana' presiding officer had to acknowledge lapses
publicly and cancel the public hearing.

Even after announcement of cancellation people did not leave the
venue and company representatives hardly could leave safe under
police force.

Move on to exempt projects from EIA

Deccan Herald - Move on to exempt projects from EIA
Move on to exempt projects from EIA
DH News Service, New Delhi:


The Prime Minister’s Office on Friday proposed a new amendment to the Environmental Impact Assessment (EIA), 2006 granting exemption to “certain projects” from environmental clearance for the next three years in states where no EIA authorities have been formed so far.

But the move is expected to trigger reactions from environmentalists, who claim that all sorts of industrial projects may be allowed under the garb of this notification without caring a hoot for the well being of the environment.

“In view of the delay being caused to expansion and modernisation projects due to several states not having constituted their EIA authorities yet, it is proposed to exempt a certain category of projects for up to three years,” the PMO said.

“Since the nature of the exemption was not specified, anything from power plant and paper mills to collieries and foundries may be allowed without the green clearance. The notification is an anti-thesis to the spirit of the EIA,” activist Leo Saldanha from Bangalore-based Environment Support Group told Deccan Herald.

“First you create an EIA, which states can not implement because of the draconian nature of the law. Then you bypass the EIA process arguing that no authorities have been set up. It’s like abandoning the entire environmental regulatory system,” he said.

Last July Kerala had rejected EIA questioning the real purpose of the assessment system. Tamil Nadu too had taken up the issue back in 2006.

“Deliberate expulsion of the specificity (in the list of projects to be exempted) means anything can get through,” said Saldanha who worked on the EIA norms since the last eight years.

Till the time of filing the report, the detailed notification is neither available on the website of the Union Ministry of Environment and Forest nor on the PMO site.

Projects for modernisation and expansion using non-polluting technologies and processes which do not increase the pollution load are exempted from the purview of the EIA Notification.

Biomass based power plants up to 50MW capacity and prospecting of minerals are proposed to be exempted from the purview of the EIA notification.

Officials, however, claim that the notification aimed at improving the environmental vigil by making it compulsory for project proponents to make public the terms of the environmental clearance. They are to insert advertisement in at least two local dailies giving the details of the terms and condition behind the eco-clearance. Also local administrations – the municipality of panchayat – have to be kept in the loop.

The activists argue that these options are already available in the EIA norms and the new notification is nothing but an “eyewash” to grant bigger industrial and infrastructure projects with foreign funding without the necessary eco-clearance.