Barely seven months after Congress president Sonia Gandhi laid the foundation stone for the project, the Y S Rajasekhara Reddy government has nipped the expansion plans of APGenco’s Damodaram Sanjeevaiah Thermal Power Station at Krishnapatnam in Nellore district.
This in order to favour a thermal plant promoted by a Congress MP, who incidentally is not close to the chief minister.
The Congress chief had laid the foundation stone for the 1,600 MW thermal power plant of APGenco on July 17, 2008. Soon after, the state cabinet took a decision to name the project after dalit leader Damodaram Sanjeevaiah.
Based on the fact that APGenco has been consistently winning awards as best power performer, the Union power ministry gave a directive that Genco should expand the capacity of its Krishnapatnam project from 1,600 MW to 4,000 MW. This was in line with its policy of encouraging coastal power plants to be set up by credible PSUs like Genco.
After the expansion plans were cleared, 859 acres of land was allotted in Krishnapatnam and all the necessary clearances obtained.
However, on February 6, the state government issued a GO directing Genco to hand over the 859 acres of land meant for the expansion of its plant to be handed over to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for onward transfer to Thermal Powertech Corporation, being promoted by the son of former Union minister and serving MP.
According to sources, the state government displayed an unusual alacrity and swiftness in taking the land from Genco and handing it over to the privatepower plant. “It looks as though the state government came under sudden political pressure on behalf of Powertech because of which the expansion plans of a great performer like Genco was thrown to the winds and the land given to the private company,” former Union power secretary E A S Sarma told TOI.
Sources claimed that the state government moved swiftly to bail out Thermaltech as any further delay would have meant that the Union coal ministry would have cancelled the coal linkages given to the plant.
Thermal Powertech had initially been allotted land in Machilipatnam in a prohibited coastal regulatory zone (CRZ) for its thermal plant.
However, after environmentalists raised a hue and cry on the grounds that the ecosystem and the breeding ground for rare birds there would be destroyed by the establishment of the plant, the environmental impact assessment committee under the Union ministry of environment and forests denied clearances for the private power plant there.
Within weeks after the land allotment in Machilipatnam was cancelled, the state directed APGenco to surrender the 859 acres given to it for the expansion plan to APIIC.
This in order to favour a thermal plant promoted by a Congress MP, who incidentally is not close to the chief minister.
The Congress chief had laid the foundation stone for the 1,600 MW thermal power plant of APGenco on July 17, 2008. Soon after, the state cabinet took a decision to name the project after dalit leader Damodaram Sanjeevaiah.
Based on the fact that APGenco has been consistently winning awards as best power performer, the Union power ministry gave a directive that Genco should expand the capacity of its Krishnapatnam project from 1,600 MW to 4,000 MW. This was in line with its policy of encouraging coastal power plants to be set up by credible PSUs like Genco.
After the expansion plans were cleared, 859 acres of land was allotted in Krishnapatnam and all the necessary clearances obtained.
However, on February 6, the state government issued a GO directing Genco to hand over the 859 acres of land meant for the expansion of its plant to be handed over to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for onward transfer to Thermal Powertech Corporation, being promoted by the son of former Union minister and serving MP.
According to sources, the state government displayed an unusual alacrity and swiftness in taking the land from Genco and handing it over to the privatepower plant. “It looks as though the state government came under sudden political pressure on behalf of Powertech because of which the expansion plans of a great performer like Genco was thrown to the winds and the land given to the private company,” former Union power secretary E A S Sarma told TOI.
Sources claimed that the state government moved swiftly to bail out Thermaltech as any further delay would have meant that the Union coal ministry would have cancelled the coal linkages given to the plant.
Thermal Powertech had initially been allotted land in Machilipatnam in a prohibited coastal regulatory zone (CRZ) for its thermal plant.
However, after environmentalists raised a hue and cry on the grounds that the ecosystem and the breeding ground for rare birds there would be destroyed by the establishment of the plant, the environmental impact assessment committee under the Union ministry of environment and forests denied clearances for the private power plant there.
Within weeks after the land allotment in Machilipatnam was cancelled, the state directed APGenco to surrender the 859 acres given to it for the expansion plan to APIIC.
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