State run power major NTPC, which had proposed to invest over Rs. 11,000 crore to set up a 1,600 MW coal-based project at Gajmara in Odisha has decided to relocate it to Gadarwara in Madhya Pradesh, due to delay in land and environmental clearances.

“We have pulled out of the project...there was delay in land acquisition, problems of environment and forest clearance. We have shifted the Gajmara project to Gadarwara,” an NTPC official said in New Delhi.

NTPC currently operates two thermal power plants Talcher Kaniha (3,000 MW) and Talcher (460 MW) in Odisha.

The company proposes to set up another thermal power project at Darlipalli, which is also facing problems on the equipment front.

This is due to BGR Energy, one of the key suppliers, pulling out of the project as NTPC and the State government of Odisha could not receive the necessary clearances in the stipulated time frame which further delayed the manufacturing process.

Despite facing various hiccups in the execution of this project, the company has said that it would go ahead with it and will invite fresh tender for sourcing equipment.

“There will be a fresh round of bids for securing power equipment for the Darlipalli plant,” the official said.

BGR Energy was awarded the contract for supplying Boilers for the plant whereas the turbine-generator sets would be supplied by state-owned BHEL.

On asked whether there would be a new tender for boilers as well as turbine-generator sets, the official said, “Maybe both.”

The project, which would be located at the Sundargarh District of the state, shall get coal from Dulanga Mine and water from Hirakud Reservoir.

The total power generation capacity of NTPC is over 41,000 MW. The company has already brought down its 75,000 MW installed capacity target by 2017 to about 65,000 MW keeping in view coal and gas shortage.