The Hindu : Andhra Pradesh / Hyderabad News : APGenco given short shrift again

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Sunday, Oct 12, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

APGenco given short shrift again

Special Correspondent

State transfers its land to Reliance Power

Transfer of Genco’s 954 acres to APICC
Lands to be sold to RP at Rs. 9 lakh
an acre

HYDERABAD: The State government has once again sidelined the AP Power Generation Corporation vis-À-vis a private company in respect of setting up new power projects. On an application by Reliance Power of the Anil Ambani group, an extent of 1,813 acres of land near Krishnapatnam in Nellore district belonging to APGenco has been transferred to the former. The Genco purchased this land for expansion of its proposed 1600 MW power station at a later stage by another 4,000 MW.

Reliance Power sought the land for the same purpose. It projected a plan to expand the 4,000-MW ultra mega power project, whose execution contract it had secured from the Union government in a competitive bidding, by another 4,000 MW.

Blow to status

The transfer of this land to Reliance Power is seen as yet another blow to the Genco and a dilution of its standing as the leader in the power generation sector in Andhra Pradesh. The 1,813 acres originally belonged to the Genco, but the State government had transferred 954 acres to APIIC.Both Genco and APIIC have now been asked to sell these lands to Reliance Power at the rate of Rs. 9 lakh an acre.

Earlier ‘shock’

The government had earlier administered a shock to Genco by handing over the 520 MW to M/s BPL.

Soon after coming to power, the Congress government had allotted this project to Genco on the ground that M/s BPL was not achieving financial closure.

It reversed this decision on the plea that it would strain business ties with Japan as the company was headquartered there.

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Andhra Pradesh