After long deliberation on whether to allow coal washery-based thermal power plants in the state, the Orissa government has permitted it with conditions.
Based on recommendations of the State Level Single Window Clearance Authority which had got the nod of the High Level Clearance Authority, the State Government's policy envisages that the power plant developer will supply 33 per cent free power from the thermal power plant based on washery-reject coal to a nominated agency/agencies authorised by it.
The power plant developer will have to pay an annual contribution at six paise a unit of energy sold outside the state towards Environment Management Fund. Establishment of coal washing plants is to be restricted to coal mining lease area or within close vicinity of mining areas so that the ash generated could be easily used for filling mining voids.
Since coal-washing did not require good quality water, the company or developer had to use mine drainage water in their process besides using dry washing technologies in such thermal power plants.
Rain water harvesting is mandatory for the coal washing plants, the policy said.
Reject-based power project operators will be encouraged to set up value addition plant for utilisation of fly ash such as cement plants and brick-manufacturing units.
Coal companies will have to contribute towards a fund as may be decided by the Government in Steel and Mines Department for environmental protection, resettlement and rehabilitation of people from coal-bearing areas and for upgradation of social and physical infrastructure in the state.
Revision of water tariff/ rate for water allocation to coal washeries will be worked out by the Water Resources Department, the policy said adding the washery-reject based power plants will adequately compensate for fly ash generation as may be decided by Forest and Environment Department or Orissa State Pollution Control Board.
Meanwhile, Steel and Mines Department has decided to constitute a committee under the chairmanship of department secretary to examine various options of raising contribution from coal mining companies.
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