In a setback to a KSK Group company-Kameng Dam Hydro Power Pvt Ltd, which is in the process of implementing a 420-MW hydel power project in Arunachal Pradesh, the Ministry of Environment and Forest has denied environmental clearance for the project.

The Expert Appraisal Committee (EAC) of the MOEF suggested the company may relocate the project, which was already relocated earlier, as it may fall under a wildlife sanctuary, national park and sample plots demarcated by the Forest Department.

The Rs 2500-crore project was taken over by KSK Electricity Financing India Pvt Ltd in January 2007 from North Eastern Electric Power Corporation.

Earlier, the project location was changed, as Seppa town, which is the Head Quarter of East Kameng district gets submerged with the proposed Full Reservoir Level of 440 meters.

The Government of Arunachal Pradesh directed the project developer that Seppa town and major population of nearby villages to be kept away from submergence.

To comply with this direction, KSK resurveyed the area to save Seppa town population from submergence and proposed to develop the project at another location, which was approved by the Government of Arunachal Pradesh as well.

KSK, therefore applied for TORs for the new site and reduced the capacity of the project from 600 MW to 420 MW.

The EAC, which examined the project proposal, said the site is suitable from various angles, but is just adjoining to Pakke Tiger Reserve, which is only 350 m away.

"After discussing all the alternatives at length, the Committee felt that even Alternative 2B (new site) is also not suitable as constructing a dam so close to the Pakke Tiger Reserve would not be advisable," the EAC observed in its comments.