NTPC 'advised' to shift location of proposed AP power plant

Written By Unknown on Rabu, 14 Januari 2015 | 21.03

A committee under the Ministry of Environment and Forests has recommended the state-owned  NTPC Limited to consider shifting the location of its proposed 4,000 MW power plant from the current site at Vishakhapatnam as the area is "ecologically sensitive".

As per the minutes of the meeting of Experts Appraisal Committee under the Ministry, the region where the 4x1000 MW Pudimadaka Super Thermal Power Project in Andhra Pradesh is proposed, is a "tsunami prone area".

When contacted, an NTPC official said they prepared and resubmitted revised layout for Pudimadaka project to the MoEF on January 9 for issuing ToR (terms of reference) for consideration, which is expected to be taken up during the meeting of the EAC (Thermal) on January 29.

"The Committee after detailed deliberations opined that the proposed site is not environmentally and ecologically suitable as there are a large number of water bodies in the proposed site and (they) are inter-linked. Further, the creek is only about 100 metres away; the region falls in high flood zone/tsunami-prone area, and has high rainfall besides being close to salt pans.

"Due to complex hydrological system, this area is ecologically sensitive. Hence, the proposed site in the present form cannot be recommended. The PP may relocate/shift the site away from the ecologically sensitive area in consultation with the state government," the committee said.

The NTPC official said the EAC made observations after reviewing ToR of Pudimadaka project on December 22 and 23. "The following actions including spects of high rainfall, high wind speeds etc. have been taken for compliance of the observations of MoEF and during design of plant.

 "Accordingly, NTPC prepared and resubmitted revised layout to MOEF on January 9, 2015 for issuing ToR for consideration, which is expected to be taken up during the meeting of the EAC (Thermal) on January 29, 2015," the official told PTI.

The same proposal which was submitted to the EAC for consideration of 'ToR' got rejected in March by the committee as NTPC did not provide alternate sites.

The EAC, in its meeting in March had advised the power producer to come up with minimum two alternate sites for the project. The AP has allotted 1,200 acres of land on lease basis for 33 years to NTPC for setting up the 4000 MW power project  in Visakhapatnam with an investment outlay of Rs 20,000 crore. According to an earlier Government Order (GO), NTPC had committed to complete the project before March, 2019 and once completed, it would be the biggest single location power project in the state.

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 GO had said.

NTPC stock price

On January 14, 2015, NTPC closed at Rs 137.85, down Rs 1.25, or 0.9 percent. The 52-week high of the share was Rs 168.80 and the 52-week low was Rs 110.90.


The company's trailing 12-month (TTM) EPS was at Rs 12.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 11.12. The latest book value of the company is Rs 104.08 per share. At current value, the price-to-book value of the company is 1.32.


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