Raipur : It's perhaps the first time the Union government has rejected an industrial project floated by an MP of its own party. In fact, the ministry of environment and forests (MoEF) has asked Chhattisgarh government to take action against Congress MP and industrialist Naveen Jindal's company, Jindal Power Limited (JPL). Worse, a close look at the exchange between JPL and various government bodies shows the company persisted with the project despite violating multiple rules.

JPL is part of Jindal Group's steel and Power Empire. Raigarh, a district of Chhattisgarh bordering Orissa, is its most important hub. The group has built the world's largest sponge iron and steel plant here, and a 1000MW thermal power plant, often riding over local protests and allegations of violations.

As part of its expansion plans, the company wanted to build a 2400MW thermal power plant in Tamnar block of Raigarh, but a local environmentalist managed to prove the allegations this time around.

Ramesh Agrawal, the founder of a local environmental group Jan Chetana, wrote a series of letters to Union minister of environment Jairam Ramesh since March 2010. He drew attention to the fact that JPL had started construction on the site of its proposed thermal power plant even before it had received environmental clearances.

A two-member team of the MoEF visited Raigarh on 22 May and found the allegations true. On 18 June, the ministry withdrew "terms of reference", in effect sending the proposal back to the company, and directing the state government to take action against it.

But even before the MoEF rejected the project, the company had run into trouble with the state government. As early as February 22, Chhattisgarh Environment Conservation Board (CECB) inspected the construction on the site and issued a directive to the company. "We asked them to stop work,'' said Baijendra Kumar, Chairman, CECB.