The power ministry has asked coal ministry to allocate alternative blocks for the proposed INR 18,000 crore ultra mega power project at Surguja in Chhattisgarh.

Bidding of the 4,000 MW power project is held up for past 16 months as the environment ministry has been denied forest clearance to two attached coal mines.

A senior power ministry official said that "We have written to coal ministry to allocate alternate coal blocks of equal capacity in the vicinity of the power project. Forest-related issues to the attached coal are ununlikely to be resolved anytime soon.”

The Chhattisgarh ultra mega power project was allocated Pindrakhi and Puta Parogia blocks with 1,114 million tonnes coal reserves in Hasdoe Arand coal belt.

The environment ministry has classified the entire Hasdoe Arand coal belt with dense forests as a no mining go zone.

A GoM, headed by finance minister Pranab Mukherjee is looking to address forest related issues to coalmines. The ministerial panel did not make any headway even in its third meeting.

(Sourced from ET)