Going green does not mean not taking alternative measures during a state of crisis. The thermal plant being installed are going to be imported from China, the ones used for Olympics game, so I doubt there is any Indian involvement.The maoist are trying to get closer to China, which India does not approve of. I think it is a good idea at the spur of the moment as the diesel price is so low and is not expected to rise any time soon. The plant would be replaced by hydroelectricity when there is enough generation capacity in few months time. There are new hydroelectric projects are on the pipeline as well which should make the diesel power generation redundant in near future. See
http://www.kantipuronline.com/kolnews.php?&nid=177510

As for now, the money invested in these plant should generate enough revenue to offset the investment through increased industrial output (replacing Indian imports that we would have to resort to if there is not enough industrial production).