Question mark hangs over NTPC project

Company acquired 1200 acres

March 23, 2018 12:42 am | Updated 12:42 am IST - VISAKHAPATNAM

The main gate leading to the site where NTPC has proposed to set up a  power plant at Pudimadaka, about 60 km from Visakhapatnam.

The main gate leading to the site where NTPC has proposed to set up a power plant at Pudimadaka, about 60 km from Visakhapatnam.

With no progress worth the name in the execution of ultra super critical power project by NTPC at Pudimadaka, about 60 km from here, now all eyes are on the future of 1200 acres it acquired from the State government for the mega project envisaging an investment of ₹26,828.

After completion of geotechnical investigations, topography and environment impact assessment, the power major also received conditional approval from the Ministry of Environment, Forests and Climate Change based on public hearing conducted in August, 2015 for the 4x1000 MW project.

A directive from the Prime Minister’s Office to change the design of the power plant from operating it with domestic coal instead of imported coal in January 2016 put the NTPC officials in a big dilemma.

Though the officials had tried to re-design and obtain long-term coal block on lease, no positive response has been received so far.

‘Closed chapter’

“For all practical purposes the project is a closed chapter. Only an official declaration is awaited,” an insider told The Hindu .

NTPC had paid ₹700 crore to A.P. Industrial Infrastructure Corporation towards acquisition of 1200 acres abutting the national highway on a fast-track mode.

The company had also sought 700 acres more for developing a captive jetty and other facilities.

Construction of jetty

It had requested Visakhapatnam Port Trust to develop a captive jetty but the Ministry of Defence had rejected approval for going ahead with the construction of jetty on ‘security grounds.’

A senior official of APIIC admitted that though they had been hearing about spiking of the project, there was no official communication made to them after they withdrew the officials deployed for the project. APIIC is looking for land to facilitate construction of industrial parks as part of Visakhapatnam-Chennai Industrial Corridor.

Glut situation

Sources said NTPC does not have any plan to take up any other project at the site earmarked for Pudimadaka.

Now there is glut situation in the power sector and everyone’s is on producing solar power. The permission for coal linkage was made by NTPC on October 31, 2016.

In reply to a question, Union Minister of State for Power R.K. Singh recently said “the completion of the project depends on the availability of requisite clearances, coal linkage and date of award of the project.”

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