DNA reported that Hinduja group is planning to revive its Andhra Pradesh power project plan mothballing since the last 15 years.

The group had almost junked the plan formulated during former PM Mr PV Narasimha Rao's central regime even after acquiring 1,000 acres of land. Now, the group has initiated the process of taking the project forward by making the state government officials agree for a revised schedule. Now, with the property becoming a premium commodity and power, too, in high demand, the group has come up with fresh plans.

According to government sources, senior group officials met Mr YS Rajasekhara Reddy CM of AP and other ministers concerned and lobbied for revival of the project.

According to sources, the group has now assured the government about its ability in taking the project forward and has shown evidence of coal linkage from Mahanandi coal fields.

State government official said "We don't know the exact reason, but the group has been lobbying with the state government for reviving the project. Finally, the chief minister, too, has given a go ahead and we hope to see some progress in the next few months."

The Official said "When the project was conceived we had a single electricity board. But now the board is split into three utilities. The power purchase agreement systems, too, have changed. There is a need for a fresh agreement with the government."

The group had first entered into an agreement in 1994 for setting up a 1040 MW coal based power project near Visakhapatnam. The state government had agreed to provide about 2,000 acres for the project. The Hindujas had completed acquisition of about 1,000 acres while the rest of it being acquired. But the group went back on its schedule and showed no interest in executing the project.

Subsequently, the state government asked the group to surrender the land. According to the state government regulations, the land allotted has to make use of the allotment within two years.

Subsequently, during NT Rama Rao's regime in the state, the government insisted on disclosing a tariff plan, which the Hinduja group refused to comply with. Since, the project was on hold and the Hindujas, too, had hinted at dropping the project.

(Sourced from DNA)