[Reader-list] Fwd: PR: Cheyyur too Risky, investors told

[Nagraj Adve]

---------- Forwarded message ----------
From: nityanand jayaraman <nity682 at gmail.com>
Date: 15 October 2013 13:59

*PRESS RELEASE*

*Cheyyur UMPP too Risky: Activists Warn Bidders*

*15 October, 2013. New Delhi –* A pre-application Conference organised by
Power Finance Corporation for potential bidders for the Cheyyur and Odisha
4000 MW UMPPs witnessed numerous questions on the risks associated with the
alleged fraud by PFC, its consultants and officials of the Environment
Ministry in facilitating clearances for the project. Prospective bidders
were warned that the 4000 MW Cheyyur Ultra Mega Power Project was a risky
proposition as the clearances for the project were facilitated by
fraudulent statements and false evidence. A coalition of social activists
handed out a “Dear Prospective Bidder” letter at the sidelines of a
Pre-application conference organised by Power Finance Corporation (PFC) at
The Ashok Hotel, New Delhi, highlighting the risks in the project. The
letter stated that “The 4000 MW Cheyyur UMPP is unlikely to materialise”
and that “The entire site selection and impact assessment processes are
fatally flawed as they are based on fraudulent statements and incomplete
analyses.” The letter also highlighted an October 3, 2013, order of the
National Green Tribunal, Chennai, that restrained PFC from finalising any
bids for this project pending the outcome of the court cases. In response
to a question on the court injunction, PFC assured bidders that the order
will not hinder the process in any way.

The letter which sought to make potential bidders “fully conversant” with
the risks associated with this project included a report released in
Chennai in September 2013 that documented a dozen “chosen” fraudulent
statements used by PFC and its consultants in justifying port licensing and
environmental clearances for the project.

PFC has claimed that the project is coming up on barren, undeveloped land
with minimum agriculture, and denied the presence of ecosensitive features
in the project vicinity. Activists said that even official documents belie
these claims. Expert Appraisal Committee meeting minutes from the
Environment Ministry note that 82 percent of the site area is agricultural
land. The port and a coal storage yard will come atop a healthy sand dune,
while the coal conveyor belt and a proposed storm water drain will cut
across several dune formations. The power plant and ash pond are bound by
the Mudaliarkuppam and Alhambrai estuaries to the North and South. These
waterbodies are dotted with mangroves and seagrass beds. Mangroves,
seagrass, estuaries and sand dunes are all identified as “ecologically
sensitive” in the Coastal Regulation Zone Notification, 2011. Both
estuaries are important feeding grounds for migratory birds, including near
threatened species like spot-billed pelicans.

In its application for CRZ clearance, PFC had claimed that there are no
scarce resources like “surface water or groundwater” in the vicinity of the
project. According to Tamil Nadu Public Works Department, Cheyyur Taluk has
82 lakes (eris) capable of storing 3500 crore litres of water and
irrigating more than 16000 acres. In fact, revenue records reveal that more
than 100 acres of waterbodies, including tidal-influenced backwaters, will
be acquired for the project.

Given the hydrological and biodiversity importance of the project site,
several vigilant citizen groups from Pondicherry and Tamil Nadu are already
engaged in the task of collecting baseline environmental quality
information, with a view to continuously monitoring the environmental
quality. “Any potential bidder must also consider the inevitable risk and
exposure arising from lawsuits for loss and restoration of ecology,” the
letter warned.

The letter was signed by representatives of various organisations including
350.org, India Climate Justice, National Alliance of People's Movements,
All India Forum of Forest Movements, Delhi Solidarity Group, Bharat Jan
Vigyan Jatha, Beyond Copenhagen Collective and Chennai-based Community
Environmental Monitoring.

 *Visit: cheyyur.wordpress.com *(Report can be downloaded from the blog's
“Resources” section.)

*Renuka Saroha*, 350.org: 8800661208. *Lakshmi Premkumar *(Tamil
interview): 9953775643