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In a major boost to the construction company NCC Limited, it has been re-allocated 972 acres at Sompeta in Srikakulam district of Andhra Pradesh for development of an agri-based economic zone.
The land allocated for a 1,980 MW thermal power project to NCC (formerly Nagarjuna Construction Company Limited) by the YS Rajasekhara Reddy government was cancelled as the project was stalled due to opposition to the construction of the thermal power project by the local people and fishermen.
There was also police firing against protesters leading to death of two local people.
Thereafter, the land allocation was cancelled and the Ministry of Environment and Forests also rejected the proposed plant.
The N Chandrababu Naidu cabinet has recently approved re-allocation of the cancelled land to NCC after securing consent of local people.
“This time, the land is meant for development of an agri-product economic zone,” YD Murthy, Executive Vice-President Finance, NCC, told BusinessLine .
A Government Order was issued last week re-allocating the land to NCC while coming out with clear time lines for implementation of the project. The District Collector has been directed to monitor the progress of the project.
The allocation comes in the wake of a fresh application made by the construction company.
Sembcorp Meanwhile, NCC, which is setting up a 1,320 MW thermal power plant near Nellore in Andhra Pradesh is set to complete the divestment of its stake in the project within couple of months. The project is being implemented in partnership with Gayatri Projects Limited where the Singapore-based power company Sembcorp Industries has acquired 45 per cent stake. The Hyderabad-based construction company is in the process of fully exiting the thermal power plant, which is expected to be in 2016. “We will fully exit the thermal power plant by divesting our remaining stake. The regulatory approvals are awaited. Once completed, we will conclude the deal. This is likely to take a couple of months,” Murthy explained.
Following the problems faced by the Sompeta thermal power plant, NCC bought out Nelcast proposed plant in Nellore and is executing the project. However, the company plans to focus on its core business of construction and therefore divesting its stake.
The remaining stake could fetch about ₹200 crore. Post this divestment by NCC, the project will have Sembcorp and Gayatri as partners. Gayatri and Sembcorp are partners in Thermal Powertech, another 1,320 MW thermal plant in Nellore, which has recently been fully commissioned.
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