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Reliance Exits Shows Delays in projects likely to dent nation's industrial & economic health
Rahul Bakshi | 07 May 2015

Similar to highway sector, the government ought to consider apt outflow of funds, or rope in reputed companies like Reliance Power and international biggies with deep pockets, which can resume those ceased projects at a fast pace and contribute towards significant development of the nation.

Including six from Maharashtra, as many as 63 thermal power projects, worth 57,121 megawatts (MWs), are delayed than their intended schedule across the country. Widening gaps in a country that is already walking the tightrope on energy supply, power shortage of around 30,000 MW -- could be detrimental for industrial health. Not only that, it could adversely affect Foreign Direct investment (FDI) and Make in India plans, initiated by our very own Prime Minister, Narendra Modi.

Going by official sources, issues such as land acquisition, frequent hartals, contractual disputes, clashes with villagers, and incredibly slow civil works are the road blockers against commissioning of these projects. A massive sum of 3.53 lakh crores have been invested into, already, as a result to which, guarantees a higher compensation structure.     

As a matter of fact, the delayed timelines have come intact with bucket full of disruptions. As in cumulative terms, core infrastructural industries have witnessed a steep decline from 4.2 percent during April-March 2013-14 to 3.5 percent during April-March 2014-15. Alok B Shriram, President of PHD Chamber of Commerce, asserts that the here's the time to put forward and implement progressive policy regimes at the ground level to meet the soaring demands, especially of rural areas.

Owing to the inordinate delays in mega power project (UMPP), the government and Reliance Power have clashed over the company's decision to pull-out of the 36,000-crore Taliaya's project. Despite conducting 25 review meetings and a delay of five and a half years, the officials of Reliance Power terminated the Power Purchase Agreement (PPA) of its 3, 960-Mw Tilaiya UMPP.  Reliance boasts three acclaimed UMPPs awards so far and has triumphantly completed the Sasan project.  For the reason that the company would require preliminary things all set, prior to commencing the construction including -- Power Purchase Agreement and availability of coal, they had to put a halt on their Krishnapatnam project due to sharp hike in price of imported coal. 


Four units of Nabi Nagar plants in Bihar, worth Rs 4, 520 crore, are stalled due to glitch in land acquisition process and civil works, which are under direct supervision of M/S ERA and supply of equipment by BHEL. Also, there has been awaiting acquisition of the balance sheet for three units of new Nabi Nagar.

Conclusion drawn:

Similar to highway sector, the government ought to consider apt outflow of funds, or rope in reputed companies like Reliance Power and international biggies with deep pockets, which can resume those ceased projects at a fast pace and contribute towards significant development of the nation.