Mumbai Just over 212 hectares of forest land, about the size of 21 Azad Maidans, are proposed to be diverted in Nashik and Thane districts for a 1500MW hydel energy development known as the Bhavali Pumped Storage Project.
The project will consist of two water reservoirs created at different elevations, with a turbine between the two to generate power as water is discharged over it. The water will then be pumped back from the lower reservoir to the upper reservoir.
The water for the project is proposed to be drawn on a one-time basis from the nearby Bhavali dam in Igatpuri, and to make up for evaporation losses as and when required either on a quarterly, semi-annually or annual basis.
The site of the project is located at Jamunde village, about 50kms away from Nashik district headquarters, and is easily approachable from Mumbai using National Highway-160 via Shahapur. The project is expected to net the Maharashtra government ₹1,325 crore per year in revenue from the sale of electricity, as per publicly available documents.
The memorandum of understanding (MoU) for the project was signed between the industries department of Maharashtra and JSW Neo Energy on September 14, 2021, after the initial site was proposed by the state government. The proposal was considered by the union environment ministry’s expert appraisal committee for terms of reference (ToR) in December last year, and was subsequently delisted on technical grounds in April.
ToR refers to a preliminary clearance which outlines the specifics of the project, and allows the executing party to go ahead and conduct an environment impact assessment (EIA) study document produced by the authority conducting the study.
“The EAC after detailed deliberations observed that the information submitted by PP lacks certain facts which are required for further consideration of the project,” the EAC had noted while declining to grant the project ToR.
Subsequently, the state forest department on May 2 received a proposal from JSW Energy PSP, a wholly-owned subsidiary of JSW Neo Energy, to divert 212 hectares of land for the project. As per a cost benefit analysis submitted by the proponent, the net present value (NPV) of the land has been calculated at about ₹24.5 crore. The forest land proposed for diversion lies within the revenue boundaries of Jamunde village, Nashik (62.42 hectares) and Kalbondhe and Kothale villages, Thane (150.23 hectares).
An official with JSW Neo Energy, who did not wish to be identified, confirmed that the project will seek fresh ToR from the ministry in coming months. “To recommend the project for ToR, the union environment ministry has sought further details on the ecological aspects of the project, including the impact of forest diversion. We have sought the forest department’s clearance as their assessment will be important in conveying these details to the ministry,” he added.
The spokesperson emphasised that the project is “critically site-specific”, since it requires a particular topography with nearby water availability.