Nagarjuna dispels power plan; snips Netcast stakes

Hyderabad, Jan 19: Nagarjuna Construction Company (NCC) which dispelled its plans to set up a coal-based power-plant, at Sompeta in Andhra Pradesh's Srikakulam district, after not getting environmental clearance.

NCC on Wednesday, Jan 19 informed the Bombay Stock Exchange that it has acquired 55 percent equity stake of Nelcast Energy Corporation Ltd ( NECL), which is developing a 1320 MW thermal project at Krishnapatnam in Nellore district of Andhra Pradesh.

Following the protest of farmers the National Environmental Appellate Authority (NEAA), denied the environmental clearance for NCC's plant project in Sompeta last year. In a police firing Three persons were gunned down at the time of agitation in Jul, 2010.

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

Incidentally, NECL, without mentioning the name of the buyer, had recently announced it had sold stake to a company and made profit of Rs 109 crore in the transaction.

The estimated cost of the 1,320 MW plant will be Rs 6,822 crore. Imported coal will be received at Krishnapatnam port and transported to the power plant through conveyer belt, the sources said.

OneIndia News
(With inputs from PTI)