NTPC gets notice to stop work on Rs 5,500-cr Nagpur (Mouda) project

Uncertainty looms over NTPC's 1,000 MW, super-thermal power project under construction at Mauda near Nagpur, following a stop-work notice issued by the State Government over the rehabilitation of affected families.

Last Wednesday, the District Collector had asked the company to stop construction work as it had not complied with the State's provision for relief and rehabilitation - throwing a spanner in NTPC's Rs 5,500 crore project, slated to produce 24 million units of power per day, by 2013. The company has acquired over 3,000 acres but the relief and rehabilitation process for the project affected families (PAFs) has not been smooth, a source familiar with the development said.Confirming the development, Maharashtra's Energy Secretary, Mr Subrat Ratho, told Business Line “NTPC is a Government organisation and I'm sure that they will abide by the expectations of the local people. Efforts are on to resolve the issue and the Government would be talking to the Collector for an amicable settlement,” he said. The Maharashtra State Rehabilitation Authority, the apex body for clearing relief and rehabilitation programme for projects, has also not given the go ahead, due to non-compliance with the Maharashtra Project Affected Persons Rehabilitation Act, 1999.

The Authority, after its meeting on May 10, found the implementation process tardy and the company has been slow in implementing the State as well as Centre's relief and rehabilitation policy, a senior State Government official said. Unless the Authority is convinced that the company is taking steps to mitigate the situation, its decision will not be reversed, the official added.

An NTPC spokesperson said that a rehabilitation package was submitted in September 2009 but there appears to be a communication gap between the company and the Government. Therefore, steps are being taken correct the situation.

Board approval

Despite NTPC's plans to set up the plant since early 2006, the Board's approval came on November 26, 2007. The company, after international competitive bidding, placed an order (in December 2008) of over Rs 2,100 crore with BHEL for supply and installation of the main plant equipment. The order consists of 2x500 MW steam and turbine generators packages. The foundation stone for the plant was laid in February 2009.

Under the State's 1999 Act and the Centre's National Resettlement and Rehabilitation Policy, the affected families are covered under 50 provisions. Depending on certain criteria, the State Act provides for houses varying from 370 sq metres to 740 sq metres.While under the Centre's policy, it is 250 sq metres plot if offered in rural areas and 150 sq metres in urban areas, along with 100 meters of built-up area.