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Goa objects to Reliance-Salgoancar power project

Sandesh Prabhudesai in Panaji

Goa's first naphtha-based private power project, promoted by Reliance Salgaoncar Private Limited, is facing trouble even as the day of commissioning nears.

While the 40 mega-watt plant has obtained environmental clearance from the Centre last month, it is facing objections from the state government on technical and legal grounds.

"How can we allow it when the RSPL has sought a clearance for a combined cycle but they want to start it with an open cycle?" asks chief secretary S R Sharma.

The commissioning was delayed even earlier since the environment ministry had not cleared the project.

The Goa government had initially signed the power purchase agreement for 40 MW project with open cycle, which was later converted to combined cycle, projecting generation of 50 MW, as per the new guidelines of the Central government.

However, since the environment clearance got delayed, its scheduled operation of open cycle by December last year had to be postponed. The RSPL then sought the clearance on February 5, but only for the combined cycle.

Lieutenant General (retd) J F R Jacob, Goa's governor now ruling on behalf of the President, has decided not to allow the private firm -- it is a joint venture by Dhirubhai Ambani's Reliance Industries and his son-in-law and local industrialist Dattaraj Salgaoncar -- to begin its operations with open cycle.

RSPL was planning to begin its operations initially with open cycle for three months, generating around 30 mega-watt, and then subsequently convert it into combined cycle. Due to shortage of naphtha, the firm was also planning to use kerosene for a short while.

"We have no objection if they seek environmental clearance for open cycle and use any fuel other than naphtha," asserts Jacob. He denies the allegation that the government is simply objecting to its commissioning. The tourist state is already facing acute power shortage.

"It is not a technical problem, but a serious problem of legality and competency," claims chief secretary Sharma. According to him, the environment impact assessment is being done only for the combined cycle project.

The government has stalled its operation, pointing out at the last clause in the clearance letter of the environment ministry, which has made a fresh reference mandatory with additional environment protection measures, if the firm deviates or alters the project proposal.

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