Kalinga Power drops Rs. 6,500 cr project in Odisha.

Kalinga Energy & Power Ltd. (KEPL), a subsidiary of Kolkata-based Shyam Group, has withdrawn is its 1,320 MW coal-fired power plant proposal in Odisha, citing delays in obtaining financial closure for the project.

Following the company's request, Odisha Industrial Infrastructure Development Corporation (Idco) has asked the Collector of Jharsuguda to stop land acquisition process for the power plant developer.

'The client company has submitted withdrawal proposal for the private land measuring 120.85 acre because of the delay in implementation of their project. You are requested to withdraw the above mentioned land from the purview of acquisition,' said Idco, the land acquisition arm of the state government in a letter to Jharsuguda collector.

KEPL proposed to establish power plant comprising two units of 660 MW each in Jharsuguda in 2011, after revising its earlier proposal of 1,000 MW plant planned at Sambalpur, according to its memorandum of understanding (MoU) signed in 2009. A status report submitted with the state government showed that it has not achieved financial closure for the Rs. 6,500 crore project till March this year.

It was neither allotted a coal block nor had secured any coal linkage from Mahanadi Coalfields Ltd. (MCL). It was also under scrutiny for slow progress of the project. Apart from KEPL, other eight companies - Nava Bharat Power Ltd, Astaranga Power Company Ltd., Chambal Infrastructure Ltd, Sahara India Power Corporation Ltd., KU Projects, JR Power, BGR Energy and Vijaya Ferroalloys have not acquired land for their projects so far.

BS