A panel of the Ministry of Environment and Forests has denied approval for forest land diversion for developing Sasan UMPP's Chhatarsal coal block, owned by Reliance Power in Madhya Pradesh.

The Forest Advisory Committee of the MoEF has rejected approval citing that over 965 hectares of forest land that is to be diverted has good quality forests.

When contacted, a Reliance Power spokesperson said that "We are hopeful of a positive solution from the GoM on Coal on the Chhatarsal forest clearance matter."

The spokesperson said that Chhatarsal coal block is an integral part of Sasan Ultra Mega Power Project and was awarded in October 2006 to Power Finance Corporation prior to bid submission.

According to a document on the MoEF website, "the committee recommended that keeping in view that the forest land proposed for diversion contains good quality forests and is an important habitat for wild life, the FAC recommended that the approval under the Forest (Conservation) Act, 1980, for its diversion may not be accorded."

The decision was taken at the FAC meeting held last month and during that time the panel also observed that the legal status of the forest land proposed for diversion is a reserved forest.

Chhatarsal captive coal block, in Singrauli district of Madhya Pradesh, is being developed for 3,960 MW Sasan UMPP.

An RPower spokesperson noted that "The reserves from this coal blocks form part of the RFP documents on which all bids were based. Reliance Power was awarded the Sasan project at a tariff of INR 1.19 per kWh.

"We understand that Chhatarsal is among the list of projects that have been recommended by PMO for expeditious clearance.”

A Group of Ministers headed by Finance Minister Pranab Mukherjee is also looking into the clearance issues related to Chhatarsal block and others.

(Sourced from NDTV)