Environment nod to NCC Sompeta nixed

In a major jolt to the infrastructure major NCC Ltd, the National Green Tribunal has cancelled the environmental clearances granted to the company’s 2,640-mw thermal power project at Sompeta in Srikakulam district of Andhra Pradesh.

The company was planning to set up a coal-fired power project with an outlay of about Rs14,000 crore in two phases with each phase having a capacity to generate 1,320 mw.

However, the plans had hit a deadend with the villagers in Sompeta agitating against the unit and the state government attempting to handle the situation with iron fist.

The police action including several rounds of firing in July 2010 at Sompeta during the protests had resulted in the death of two villagers forcing the company to put the project on hold.

Though the clearances given to the project were put on hold immediately after the violence at Sompeta, the tribunal has now cancelled the clearances asking the company to go through a fresh round of public hearing for setting up of the project.
However, the company sources unperturbed with the development and claim that the project was already on hold and the plans to set up thermal unit have now been shifted to a different location at Krishnapatnam near Nellore.

Though saying that the project at Sompeta was on hold, the company sources said that they would attempt to comply with the regulations yet again and try to seek the clearances afresh.
As an alternate to the Sompeta project, NCC has been working on the power project at Krishnapatnam after taking over a 1,320 mw project from the Chennai-based Nelcast.

Another Hyderabad-based infrastructure firm, Gayatri, too, is participating in the project with about 45% stake. The project is yet to achieve financial closure.

Meanwhile, the environment groups vowing to ensure that the project never comes up at the agriculture lands in the area, which has a potential to affect another 25 neighbouring villages.

“There is a struggle committee formed in Sompeta against any thermal project proposed in the region. This committee will continue to oppose the project and if the government and the company force their way, we will think of a mechanism to counter it,” a source associated with an environment group said.