Andhra Pradesh high court stays land allotment to Nagarjuna Construction

The Andhra Pradesh high court on Thursday stayed allotment of land to NCC (formerly Nagarjuna Construction Company) at Sompeta in Srikakulam district to set up a 2,640 mw thermal power plant.

The first phase of 1,320 mw was to begin generation by 2014.
With villagers in the project area turning hostile things started going awry last July. At least three villagers were killed in police firing carried out to control the agitating protestors.

Following this, NCC decided to set up a similar project in Krishnapatnam and recently entered into an agreement with Chennai-based Nelcast.

But NCC continued to possess the land at Sompeta, and planned to make use of it sometime in 2012.

However, some farmers who had to give up land approached the high court to get the government order on allotment quashed, their counsel KS Murthy said.

NCC had acquired 972 acres from the Andhra government and 573 acres were purchased from private owners to set up the power plant.

Justice Nuti Ramamohan Rao, while staying the government order issued in September 2008, said no work be carried out at the project site.

“The high court issued notices to all the parties concerned including the state and NCC and asked them to file their replies within six weeks,” Murthy said.