BHUBANESHWAR | Sept 01, 2016 : Pointing out that coal-bearing Odisha has been very supportive of the Centre's push to increase domestic coal supply, Chief Minister Naveen Patnaik sought financial incentives in return. In a letter to the Prime Minister on Wednesday, Patnaik asked for Pump Storage Projects (PSP) to be subsidized by National Clean Energy Fund (NCEF).

Patnaik's argument is that Odisha, home to significant coal mines and washeries, has to "face the adverse effects of coal mining such as displacement of people, environment pollution, reduction in forest area and strain on infrastructure resources."

Royalty on coal, which would accrue to Odisha, hadn't been revised in four years. Meanwhile the Governmnet of India's Clean Environment Cess, upped from Rs 200 to Rs 400 in the last budget, will bring an estimated Rs 6400 core to the NCEF. Coal bearing states had a legitimate right to a share of this fund argues Patnaik. "It is in this context that I had requested for sharing of at least 60 per cent of the proceeds of the cess on coal with the coal bearing states through an appropriate mechanism," he says in his letter.

It was imperative that coal bearing states should be assigned reasonably lower limits for Renewable Power Obligation and renewable energy projects in the states should be funded from the NCEF.

Patnaik wants the PSPs of four hydro-electric projects - Upper Indaravati, Balimela, Upper Kolab - with total capacity of 1320 MW to be considered "renewable projects." Patnaik, in his letter, sought 75% per cent of the estimated cost of the PSPs, or a total of Rs 2963 crore, to be provided from the NCEF.

(Source: http://economictimes.indiatimes.com/)