September 3, 2011

Adra project in limbo as Railways, NTPC differ on land value


Sat, Sep 03, 2011

Debjoy Sengupta, ET Bureau

KOLKATA: National Thermal Power Corporation's proposed project at Adra in West Bengal, which it plans to execute with the Railways, has hit a roadblock over valuation of land on which it is to be built. The power producer now plans to approach the Railway Ministry for a resolution.

The 1,3200-mw thermal power plant is to be executed as a 26:74 joint venture between the two state-run entities. Over 1,300 acres of land identified for the project belongs to the Railways. NTPC and the Railways need to agree on its pricing for the project to take off.

"We feel the price being asked is on the higher side. The land is valued nearly at par with that in Kolkata, and NTPC executives are not too happy with the price being asked," an NTPC source said, adding, "NTPC officials are planning to take up the issue with the Railway Ministry so that it can be solved amicably."

The power producer is also waiting for the go ahead from the state government for acquiring land for another proposed 1,600mw thermal power plant at Katwa in Bardhaman district. The state government has acquired about 575 acres of land for the plant. NTPC needs another 1,000 acres to start construction.

"We cannot start construction work on this 575 acres," NTPC chairman Arup Roy Choudhury had said, adding that 0.7 acres of land was needed for every megawatt of power generation capacity.

The memorandum of understanding for the plant had been signed in December.

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