The Hindu Business Line : Hindujas may have to renegotiate Simhadri land terms

Hyderabad, Aug. 29 The Hindujas, who have evinced interest to revive the 1,040-MW coal-based power plant planned at Simhadri near Visakhapatnam by making it a merchant power plant, may have to renegotiate the terms of the project and also with the owners of land they had purchased, in all probability paying a higher price now.

The Hinduja National Power Corporation won the ‘fast track’ project through a global competitive bid in 1994. However, it could not take off due to various reasons including the high project cost of about Rs 6,300 crore quoted by the company citing escalation due to dollar fluctuations.

Recasting project

The representatives of the company have come back to the State showing interest to re-cast the project making it a merchant power, that is to sell to any buyer. However, the State, it is learnt, is said to have impressed upon them to offer 25 per cent of the power for local consumption.

Land reallocated

In the meantime, some of the land initially allotted to the Hindujas was reallocated to other projects. NTPC has a plant nearby at Simhadri.

According to Government sources, the land was allocated after negotiations the State Revenue Department had with some of the local people including the Wakf Board (some of the lands are said to be Wakf properties).

Since the land was allotted at much lower rates then and the project could not take off, it is learnt that the local owners of the land, who parted with their property, are now seeking current market rates, sources said.

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