Nagarjuna Construction buys stake in proposed power plant

Hyderabad, Jan 18 (PTI) Nagarjuna Construction Company(NCC), which put off its plans to set up a coal-based powerplant at Sompeta in Andhra Pradesh''s Srikakulam district afternot getting environmental clearance, today said it hasacquired majority stake in a proposed power plant.

The National Environmental Appellate Authority (NEAA)had not given the environmental clearance for the NCC''s powerproject last year. Three persons were killed in police firingon farmers and fishermen who were protesting against theproject in July last year.

NCC today said it has acquired 55 per cent share inChennai-based Nelcast Energy Corporation Ltd (NECL), which isdeveloping a 1320 MW thermal project at Krishnapatnam inNellore district of Andhra Pradesh.

"NECL has acquired land for the project and has alsosecured all requisite approvals from the authoritiesconcerned," NCC said in statement here.

Sources familiar with the development said the dealwas closed in the first week of January and NECL has receivedthe payment.

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

The estimated cost of the 1,320 mw plant will be Rs6,822 crore. Imported coal will be received at Krishnapatnamport and transported to the power plant through conveyer belt,the release added.