AEL project to get over 3,000 acres acquired for UMPP in Odisha's Sundargarh
ROURKELA: The land previously acquired for the 4000 MW Ultra Mega Power Project (UMPP) at Bhedabahal in Sadar block of Sundargarh district is going to be used for establishment of the mega coal-to-chemicals plant of the Adani Enterprises Ltd (AEL).
The High Level Clearance Authority (HLCA) of the state government had given its go-ahead for the coal-to-chemical plant proposal of the AEL at an investment of Rs 84,000 crore in Sundargarh with potential to generate around 36,000 jobs.
The coal-to-chemical plant will come up under the aegis of the newly-incorporated OD Syn-Gas & Chemicals Limited (OSGCL), a step-down subsidiary of the AEL.
Replying to a question of Sundargarh MLA Jogesh Singh, deputy chief minister KV Singh Deo told the state Assembly that the State Level Single Window Clearance Authority (SLSWCA) in its 144th meeting approved the coal-gassification plant of OSGCL on the land acquired for the UMPP.
He further noted that total of 3,046.99 acre including 2,731.58 acre private land and 315.41 acre government land across six villages of Sadar block were acquired through IDCO for the UMPP. The land transfer process was completed by Sundargarh administration and IDCO between 2015 and 2018. In 2023, the Union Ministry of Power decided to close the UMPP project.
The new development has, however, cast a shadow over the 1600 MW power plant proposal of the Mahanadi Basin Power Ltd, a special purpose vehicle (SPV) of Mahanadi Coalfields Ltd (MCL), which has been eyeing the same land.
Sources informed the MBPL project was dragging its feet after getting in-principal approval from Ministry of Coal in 2010. After the UMPP proposal was scrapped, the state government in 2023 approved the MCL’s plan to locate its proposed power plant at Bhedabahal. The Cabinet Committee on Economic Affairs on January 18, 2024 had announced equity investment of Rs 4,784 crore against the project’s estimated cost of about Rs 15,947 crore.
The Sundargarh administration in February 2024 asked the affected families to provide names of their representatives for reconstitution of the Rehabilitation and Periphery Development Advisory Committee. But the affected families had sought enhanced land compensation and R&R benefits as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 since the previous land acquisition was carried out under the Land Acquisition Act, 1894.
Sundargarh collector Subhankar Mohapatra said land transfer to MBPL is in discussion stage.

