The Rs 9,400-crore Solapur thermal power project of NTPC is facing turbulence. Farmers and villagers, who had sold their land to the company, have launched an agitation, seeking higher compensation.

NTPC is developing 1,320-MW at Fatatewadi village in Solapur district of Maharashtra. The project includes two units of 660 MW each. NTPC will use super-critical technology for the project, which ensures about 5-10 per cent reduction in CO{-2} emission.

Market rates

Former MP from Solapur and Vice-President (Maharashtra) of BJP, Subhash Deshmukh, told Business Line that the farmers and land-owners want compensation for their land in line with market rates. They want the contracts for building the plant to be given to local people and not outsiders.

“The farmers here feel they have got less money for their land, in comparison to similar projects in other parts of the State,” he said.

An NTPC company official, on condition of anonymity, said that depending on the fertility of the land, rates from Rs 3 lakh to Rs 6 lakh per acre were paid to the farmers. However, due to appreciation of the land around the project, the farmers now want Rs 8 lakh per acre as additional compensation, which the company is not willing to give, the official said.

Three local Gram Panchayatas have moved a resolution, asking NTPC to stop construction work at the site until their demands are met, the official added. They also want a higher percentage of locals to be absorbed in the plant as workers and officers.

“The trouble started when smaller contracts, such as building of local guest-houses and other minor civil contracts were given to outside contractors,” the official said.

Now, the villagers have decided to escalate the matter and take it to Home Minister Sushil Kumar Shinde, as he was instrumental in getting the project at Fatatewadi village, when he was in charge at the Power Ministry, the official added.

Construction work at the site started in 2009 and major contracts of over Rs 5,000 crore, which include equipment such as boiler, turbine and generators, have been awarded to such companies as BHEL, BGR Energy Systems and a joint venture company of Alstom and Bharat Forge.

A senior executive with Alstom said that if the project gets delayed, it would impact a number of equipment suppliers. They could face financial strain because of project delays.

“Due to recession in the market, there are not enough orders, and such delays will hurt the business,” the executive said.

In an e-mailed statement, NTPC said that construction activity is under way at the site.

Company view

However, on June 17, construction work was partially affected for a few hours as certain contractors and contract labourers could not enter the site, following a dharna by an agitating group.

The company is not negotiating with the farmers, either about higher land compensation or on absorbing local workers in the plant.

The land was acquired by the Maharashtra government under the consent method under the Land Acquisition Act.

The land rate was fixed by the State Government with consent of Project Affected Persons (PAPs) of the three villages and NTPC, the statement said.

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