Nagarjuna Construction scraps Sompeta thermal project, acquires 55-% stake in NECL

Nagarjuna Construction Company (NCC) has scrapped its plans to set up a coal-based power-plant, at Sompeta in Srikakulam district of Andhra Pradesh, after failing to get environmental clearance.

The company today informed the Bombay Stock Exchange that it has acquired a 55-per cent equity stake in Nelcast Energy Corporation Ltd ( NECL), which is putting up a 1320MW thermal power project at Krishnapatnam in Nellore district of Andhra Pradesh.

NCC was denied environmental clearance for its project in Sompeta last year by the National Environmental Appellate Authority (NEAA) following protests by farmers and the death of three persons in police firing in the agitation in July last year.

In a statement the company said, "NECL has acquired land for the project and has also secured all requisite approvals from the authorities concerned.''

Incidentally, in a recent announcement NECL had said it had sold a stake to a company making a profit of Rs109 crore in the process.

The cost of the plant has been estimated at Rs6,822 core. According to sources, imported coal would be received at Krishnapatnam port and transported to the power plant through conveyer belt.