12 Sep 2012 11:20 AM from CapEx
Suparna Chattopadhyay

Facor Solar stalls Rs.5.5 billion solar power project in Rajasthan

Pawanjay Steel’s sponge iron project in Jharkhand scrapped

Eight projects worth Rs.13.7 billion were stalled during the week ended 11 September 2012.

Facor Solar Ltd (the Facor Group company) has decided to drop the solar power project it had proposed in Rajasthan. However, the reason for shelving the project was not disclosed. The Rs.5.5 billion project was announced in November 2010 under the ’Jawaharlal Nehru Solar Mission’. It was to be implemented in two phases of 15 mw each. The company was in the process of acquiring around 100 acres of land for the project in Barmer and Jaisalmer districts of Rajasthan.

Jharkhand based company - Pawanjay Steel & Power Ltd (PSPL) has decided to scrap its upcoming 1 million tonne sponge iron manufacturing unit at Lohardaga in Jharkhand. Problems related to land acquisition has been the sole reason for abandoning the project. The project was to come up in two phases of 0.5 million tonnes each with a cumulative investment of Rs.4 billion. The company had announced the project with a 24 mw captive power unit in June 2004. The government of India had allotted North Dhadu coal mines to the company for the project.

The sponge iron project was put on hold by the company in May 2010. Around 80 acres of land for the project was acquired by December 2009, but that land was under litigation. Villagers from Sithio and Datri of Senha block of Lohardaga started protesting against the company by ploughing the land which was acquired by PSPL to claim their possession on the land. Several protests from the local villagers and related land acquisition problems led to, the company abandoning the project. On the contrary, PSPL is now planning to acquire a running plant in Hazaribagh, Bihar.

Primo Power & Infra Pvt Ltd has put its coal based power project at Nayagarh, Orissa on hold. According to one of the Directors of the company, the Rs.3 billion project was stalled, because the state government demanded that 13 per cent of the total power generated from the plant should be given free to them. This was making the project unviable for the company. The project was announced in May 2011.

The 2 million tonne cement grinding unit proposed by Amrit Cement Pvt Ltd at Kahalgaon in Bhagalpur district, Bihar has been shelved. The company had announced the project in February 2010 with an investment of Rs.1 billion. Environment clearance to the project was given in November 2010.

Other 3 projects which were stalled during the week ended 10 September are:

  • Inox Leisure’s 4 screen, 1,250 seats multiplex project in Jodhpur, Rajasthan. The project was announced in December 2007, but work on the project never started. The company has now decided to abandon the project

  • Mahanadi Coalfield - a subsidiary of Coal India Ltd has stalled mining operations at its Lajkura O C mines located in Brajrajnagar in Jharsuguda district, Orissa. The work has been put on hold because the mine is yet to receive forest clearance.

  • Tamil Nadu government has put its amusement park project at Island Ground in Chennai on hold. The project was announced with great fanfare in July 2010.