Mineral conservation projects face water hurdle

A mainstream media interpretation

Mineral conservation projects face water hurdle
Bishnu Dash / Kolkata/ Bhubaneswar April 02, 2010, 0:29 IST

The non-availability of enough water and consequent delay in obtaining water drawal clearance from the government is causing delay in the approval of projects in the state. Along with the greenfield power projects, other mineral extraction and value addition projects have become a casualty of this situation.

Two iron ore pelletisation projects with a combined investment of Rs 315 crore have been pushed into uncertainty as the water clearance for these projects is yet to come. Under ideal conditions, the permission was expected within 15 days of the application.

Similarly, the water resources department is yet to take action on construction of reservoirs to provide water to industrial projects even though the High Level Clearance Authority (HLCA) chaired by the chief minister Naveen Patnaik has asked the department to initiate measures in this direction.

Official sources said, the proposal of Ardent Steels Ltd (ASL) to expand its present capacity of iron ore pelletisation from 0.6 million tonne per annum (mtpa) to 1.2 mtpa, along with setting up of a 1mtpa iron ore beneficiation plant, at Phuljhar in Keonjhar district couldn’t be approved by the State Level Single Window Clearance Authority (SLSWCA) due to this reason.

The proposal of Kashvi International Ltd (KIL) to set up 0.3 mtpa iron ore pellet plant at Champadihi (Barbil) in the district of Keonjhar at an investment of Rs 56.21 crore has also been hit.

Though the state nodal agency for promotion of industry, the Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) had written to water resources department to send its views on availability of the required amount of water from river Baitarani, it is yet to receive the views of the department on the matter.

It may be noted, both the projects were to source water from river Baitarani. These projects are facing problems despite the fact that their water requirement is nominal and iron ore beneficiation and pelletisation projects are considered as mineral conservation projects.

On the other hand, Rs 850 crore investment proposal of Emami Paper Mills Ltd (EPML) to set up a wood based pulp and paper mill with a capacity of 1 lakh tonne per annum near Balgopalpur in Balasore has been pushed to the cold storage essentially due to non-availability of water.

Though the project requires 60,000 cubic metre per day from river Subernarekha, the formal clearance of water resources department is awaited. “The non-availability of water has become a major issue for clearing new projects. Unless concerted effort is made to address the problem, this would a major irritant for soliciting new investment”, a senior official associated with the process said.

http://www.business-standard.com/india/news/mineral-conservation-projects-face-water-hurdle/390489/