Kakarapalli power plant fizzles out

Srikakulam: The proposal for setting up of thermal power plant (TPP) at Kakarapalli in Santhabommali mandal in the district has fizzled out due to financial crunch and changed government policy. The erstwhile Congress government in the state allotted 2,050 acres land to East Coast Energies Private Limited in 2008 through AP Industrial Infrastructure Corporation (APIIC) under Kakarapalli revenue village limits for the project.

The company planned to complete the project in two phases by setting up coal-based power generation plants. In each stage, company planned to produce 1,320 megawatts of power with the total capacity of 2,640 MWs. At that time of land allotment of land, affected villagers strongly opposed the move.

Environmentalists launched an agitation against on the ground that the plant will disrupt ecology in the area as all the allotted lands are swamp lands, which are important for protecting the environment.

On the other hand, local farmers opposed the project saying that their fertile lands will be submerged as rain and flood water receding ways are affected. Fishermen too protested expressing fears that thermal plant’s pollution would deprive them of their livelihood.

The agitations by various sections of people burst into violence on February 28, 2011, leading to death of three persons in police firing. Following the violence, works of the plant were stopped for more than two years. However, the company resumed the works in October 2013 and compound wall and chimney works have been finished so far.

But works stopped again in April 2015 due to financial crunch on the part of East Coast Energies Pvt Limited. Power Finance Corporation and 18 more institutions provided Rs 3,000 crore finance for the TPP project. Despite this, the company could not overcome the financial constraints.

In the meantime, TDP government took over power in the state after state bifurcation. Subsequently, the current government changed its policy on thermal power plants saying that the state has already surplus power and there is no need to depend on thermal power at a cost of environment and public safety.

“We are generating more power than the demand, as a result of which we have surplus power. There is no need to depend on thermal power now,” state energy minister Kimidi Kala Venkata Rao told The Hans India. About the Kakarapalli plant, he said, “At present, the state government has no agreement with the East Coast Energy Private Limited.

They stopped works after getting land, water and other facilities from the government. No person from the company approached the government in the last five months since I assumed the charge as minister for energy.” District collector Kalva Dhanunjaya Reddy said, “East Coast Energy Private Limited stopped works of Kakarapalli power plant.

They reportedly tried to get APGenco’s help earlier but it has not materialised. We have no official communication regarding the future of the plant.”East Coast Energy whole time director Penmatsa Venkata Narasimha Raju, could not be reached despite repeated attempts by this correspondent. When contacted, the company managing director Krishna V Tatineni refused to comment over halt to Kakarapalli power plant works allegedly due to financial crunch.

By Chowdari Lakshmana Rao