Chhattisgarh – Vedanta’s stalled power plant casts shadow on other projects

London-listed Vedanta Resources founder and executive chairman Anil Agrawal said that the its stalled power plant in Chhattisgarh’s Korba district had hampered other projects of the company in the state.

Agrawal landed here Monday to talk to the authorities to get consent to operate for its 1200-Mw power plant set up in Bharat Aluminium Company Limited (Balco) facility in Korba district. The construction of power plant was completed two years ago and since then it had been lying idle.

“The Chhattisgarh government should take initiative for starting the power plant at the earliest,” Agrawal said. The stalled power plant had cast shadow on company’s expansion and new projects in Chhattisgarh, he said, adding that the project was National property and should be allowed to operate without further delay.

The Vedanta Resources chief said the company had invested Rs 15,000 crore on the expansion of Balco in which it has 51 per cent stake while remaining 49 per cent share lied with the Government of India. The company had planned to make Balco the biggest aluminium facility in the country by enhancing aluminium production to 1 million tonne per annum, Agrawal said. The project had been badly affected.

The proposed aluminium park project in which Balco would have a larger role to play had also come to a standstill. “Only after the expansion, the company could ensure raw material for the 100 units proposed in the park that would add value to the product in the state and general a job number of job,” Agrawal said.

Agrawal said the government should also ensure better linkage of coal for the industry to avoid use of imported coal. The companies had been passing through worst coal crises and hence the government should take immediate action.

Reacting to the delay in getting its project approved in Chhattisgarh, Vedanta Resources chief said it would affect the industrial growth. “Madhya Pradesh and other states are fasting emerging as dream destination for investors because of its policies,” he added.

http://www.business-standard.com/article/companies/vedanta-s-stalled-power-plant-casts-shadow-on-other-projects-114102701276_1.html