East Coast power project halted by environ ministry

Yet another major thermal power project has gone the Sompeta way in Andhra Pradesh.

The 2,640-mw thermal power project being set up by East Coast Energy at Kakarapalli in Srikakulam has been halted by the Union environment and forests ministry following the opposition from the residents of the villages near the plant.

East Coast is a special purpose vehicle promoted by the Singapore-based infrastructure company Asian Genco Pte Ltd (AGPL), where Power Trading Corporation (PTC) and few private equity firms including Morgan Stanley, General Atlantic and Goldman Sachs have committed investments.

Another infrastructure major, NCC, too, had to shift its 1,320 mw plant from Sompeta in Srikakulam to Krishnapatnam with the opposition from the locals leading to police firing and the death of four villagers.

Police had to open fire even at Kakarapalli with the villagers resorting to stone pelting on the police, who were deployed to provide protection to the East Coast officials in developing the project. Two villagers died in the firing on Monday and two more are said to be in critical condition.

Like in Sompeta, Kakarapalli, too, has fishermen population and they were opposing the plant since it would cause environment issues both in the sea and the agriculture fields in the surrounding areas.

The ministry has now asked East Coast Energy to submit a detailed report by March 6 showing compliance with the conditions specified while granting environmental clearances to it, especially pertaining to the issue of wetlands and other matters.

East Coast Energy is currently at an advanced stage of construction of the power project being taken up in four phases. The first phase of 660 mw is scheduled to commence production by September 2013, while the other three phases would be ready within a span of six months for each phase.