AP leases 1,200 acres to NTPC for super thermal power project

The Andhra Pradesh government has allotted 1,200 acres of land on lease to the National Thermal Power Corporation Ltd (NTPC) for setting up a 4,000 MW power project near Visakhapatnam involving an outlay of Rs20,000 crore - the biggest single-location power project in the state.

The land allotted is near the APSEZ (special economic zone) in Pudimadaka village of Atchuthapuram Mandal in Vishakhapatnam District.

According to an order issued by the state government on Thursday, NTPC – the country's biggest power producer - has committed itself to completing the project before March 2019.

The land was allotted by the public sector undertaking for setting up a coal-based 5x800 MW (4,000 MW) super thermal power station at Vishakhapatnam.

"The government, after careful examination of the matter, hereby directs the APIIC to allot and hand over 1,200 acres of contiguous land in APSEZ (denotified area), Pudimadaka village of Atchuthapuram Mandal, Visakhapatnam district to NTPC on long lease basis of 33 years for setting up a coal-based 5x800 MW (4,000 MW) Super Thermal Power Station.

"If the project is running successfully at the end of the lease period, it can be extended further on mutual terms. The lease conditions as well as rental will be as fixed by APIIC as per their policy," the government order said.

The vice-chairman and managing director of the Andhra Pradesh Industrial Infrastructure Corporation Ltd will take further necessary action accordingly, the order said.

The land has been sought partly because it is close to NTPC's existing Simhadri power project.

The proximity would allow the PSU to take advantage of the existing infrastructure such as housing facility, railway siding and technical manpower already present in Visakhapatnam.

The question however is that with a coal crisis perpetually staring India in the face, where the new plant will get its fuel from.