NCC says Sompeta power project kept in abeyance, not junked

NCC, the Hyderabad-based infrastructure major, has not junked its plan to set up a 2,640 mw thermal power project at Sompeta in the Srikakulam district of Andhra Pradesh.

The project had run into local opposition due to environment concerns.

“We are now working on the power project at Krishnapatnam. We will take up the Sompeta project in the 12th Plan period,” a company official, who did not wish to be identified, said.

NCC was planning to set up the project at Sompeta with a first phase capacity of about 1,320 mw through an outlay of about Rs 8,000 crore.

The company was also in the final stage of acquiring about 1,500 acres required for the project, including about 900 acres provided by the state government.

However, local citizens objected to the setting up of the project and the protests took an ugly turn when the police had opened fire on the agitating villagers, killing two farmers.

Consequently, the company had decided to shift its project to Krishnapatnam and had acquired an existing project from the Chennai-based Nelcast. The project is currently being implemented with a commissioning schedule of 2014.

As a follow up of the events, the environment clearances given to the project were put on hold and the issue was referred to the National Green Tribunal.

According to sources, the tribunal has now asked the parties in the controversy, including the environment groups and villagers, to file their counters early next month.

“The coal linkages provided to the Sompeta project were shifted to the one coming up in Krishnapatnam. NCC has not fully given up the project though the coal availability remains an issue, apart from the funding arrangements. However, the entire issue would be revisited in the 12th Plan period,” the source explained.

The Congress leadership in Srikakulam too is supporting the setting up of the project in the area and has been accusing the locals of being anti-development.

Dharmana Prasad Rao, a senior Congress leader from Srikakulam, last week vowed that the state government would go ahead with its plans to bring more thermal projects to the area.