Bhubaneswar, Sept 1: Noting that coal bearing states face the adverse effect of mining, reduction in forest area, risks of environmental pollution and strain on water resources, Odisha Chief Minister Naveen Patnaik yesterday asked the Centre to provide financial assistance for Pump Storage Projects (PSP) from the National Clean Energy Fund.
Patnaik further stated that once the institutional mechanism is established and in-principle clearance is accorded by the government of India, specific proposals will be submitted by the state government for execution of renewable energy projects including hydro-electric projects, more particularly, the PSPs. The CM said that whereas the coal bearing states have to bear the brunt of negative externalities on account of setting up of the pit-headed thermal plants to cater to the power requirement of the country, some other states have the locational advantage of harnessing the renewable energy. Further he stated that hydro-electric projects having installed capacity of more than 25 MW, especially the Pump Storage Projects, may also be considered as renewable energy projects. These projects would help tremendously in meeting the peak demand and also in balancing the Grid.
Meanwhile, Patnaik said the state government has conducted pre-feasibility studies of three PSPs. They were, Upper Indravati with capacity of 600 MW, Balimela (400 MW) and Upper Kolab (320 MW). Together, these three projects’ capacity would be 1320 MW which required investment of Rs 3950 crore. The state sought an assistance of Rs 963 crore for the three projects from the NCEF. Of the three projects, detailed project report in respect of 600 MW PSP scheme of Upper Indravati Hydro-electric project is under preparation by M/s WAPCOS Limited, Patnaik mentioned.
Stating that the rate of royalty on coal has not been revised for more than four years, Patnaik pointed out that the Central government has enhanced the “Clean Environment Cess” on coal from Rs 200 per MT to Rs 400 per MT in the Union Budget 2016-17. It is learnt that the proceed from the clean environment cess on coal are deposited in the National Clean Energy Fund, which is earmarked for development of renewable energy in the country, Patnaik said, as the cess is collected from the coal bearing states, these states have legitimate expectation of getting a share from the funds collected on this account. He said Odisha being a major coal bearing state has to face different impact of coal mining activities.
