Protests put projects worth Rs 40,000 crore on hold

Protests by local people and environmental organisations have put on hold projects worth over Rs 40,000 crore in north coastal Andhra Pradesh.

During former chief minister YS Rajasekhara Reddy’s regime various power and alumina plants were sanctioned in this region. Now, the fate of most of the projects hangs in balance.

NCC Power Projects Limited, a subsidiary of Nagarjuna Construction Company (NCC), which was developing a 2,640 Mw power plant in Sompeta mandal of Srikakulam district had shifted its project to Nellore district.

The project was facing stiff resistance from the villagers and this took an ugly turn when two people were killed in police firing at the site. The plant had received environmental clearance from the Centre on the ground that it was being set up on waste land. However, Samata, Forum for Better Visakha and a few other non-governmental organisation filed a case with the National Environment Appellate Authority stating that it was not waste but wetland.

Acting on the complaint, the authority cancelled the environmental clearance. The company had already acquired 573 acres on its own while the state government had allotted another 972 acres. It even spent a few crores on the over Rs 10,000 crore project.

Similarly, East Coast Energy had got all clearances for setting up a 2,640 Mw power plant with a captive port in Srikakulam district. The state had allotted about 2,500 acres. The total cost of the project was estimated at Rs 15,000-crore and the company had spent about Rs 1,300 crore on various works. But due to the recent police firing at the plant site in which two people were killed, the Centre asked the company to stop the work.

“Development that violates the law of the land and destroys the ecology is not sustainable in the long run. Our demand is that governments should respect the law, respect the ecology and respect the livelihood and views of locals,” says EAS Sarma, convener, Forum for Better Visakha, and former energy secretary.

He adds, development should be what the people want and not imposed from Hyderabad and Delhi. Citing an example, he says in East Godavari district farmers willingly gave their land to an industrialist to set up a sugar factory because they expected good demand for their sugarcane besides employment. Later, as the same industrialist proposed a thermal power plant instead of sugar factory in the same place, farmers opposed it.

Recently, when Hinduja group began work on its 1,040 Mw power plant with an investment of more than Rs 6,000 crore in Visakhapatnam district, it had to face the ire of local people, who were supported by political parties and environmentalists.

The activists claim that these power plants are being set up against the Coastal regulation zone rules and would result in raising the pollution levels abnormally in the region once operational. This apart, local fishermen and poor farmers would also lose their livelihoods.

“While setting up industries and projects, the governments and industrialists are violating the Forest Conservation Act, Environment Protection Act and land acquisition Act,” says G Srinivas, coordinator of Samata.

Bauxite mining
Not just power plants, bauxite mining in Visakhapatnam district proposed by JSW Alumina and Anrak Aluminium Limited too is facing opposition from local people.

The two companies have proposed to set up alumina refineries with an investment of over Rs 12,000 crore in the district. Both have procured the required land.

Though JSW Alumina has spent more than Rs 200 crore on the project, it is unable to continue with the mining activity as tribals with the support of green activists have stopped the Andhra Pradesh Mineral Development Corporation (APMDC) from taking bauxite ore from the agency area.

Following this, the Ministry of forest and environment ministry refused permission to APMDC for bauxite mining. Both the projects in this scenario may not materialise.

“If we allow bauxite mining in the agency area, it will create severe environmental problems and local tribal will lose their culture and traditional livelihood,” Srinivas says.

Confederation of Indian Industry - Vizag Zone chairman RVS Raju suggests that the government should put up a proper mechanism for setting up industries to avoid these kinds of agitations.

“The government itself can develop industrial corridors to reduce land acquisition problems and address the grievances of local people before the foundation for such projects are laid,” he says.

source: BS