NTPC's Kudagi ultra mega power project trips again

The 4,000-Mw Kudagi Ultra Mega Power Plant proposed to be set up by the National Thermal Power Corporation (NTPC) at Kudagi in Basavana Bagewadi taluk of Bijapur district, has run into rough weather with farmers opposing to accept land prices fixed by the state government.

A meeting convened by the land fixation committee headed by deputy commissioner of Bijapur district on July 9 with farmers of the identified villages remained inconclusive. The farmers, who have been offered Rs 2.75 lakh per acre for dry land and Rs 3 lakh per acre for partially irrigated land, have refused to accept the government offer. Instead, the farmers are demanding Rs 20 lakh per acre for dry land and Rs 30 lakh per acre for irrigated land, officials in KIADB said.

The Karnataka Industrial Area Development Board (KIADB) has been entrusted with the task of acquiring 3,000 acres required for the project. It has identified land in Kudagi, Masuti, Telagi and Golasangi villages and issued final notification for the first phase acquisition of 1,923 acres of land under Section 28 (4) of KIADB Act.

NTPC has already deposited Rs 29 crore with the KIADB to acquire land in phases. The Karnataka government had signed a memorandum of understanding with NTPC in January 2009 for the proposed project. This would be the first power project being set up in Karnataka by the NTPC.

“The farmers are not happy with the prices fixed by the Bijapur district administration. The prices are fixed as per the government norms taking into account the registration value. As against the Rs 80,000 per acre calculated as per the guidance value, the caommittee had fixed Rs 2.75-Rs 3 lakh per acre. But, farmers want more and their demands are abnormal,” a KIADB official told Business Standard over phone from Bijapur.

However, he said, the government may consider raising prices little more. The government had paid up to Rs 8 lakh per acre two years ago for acquiring land for a new airport in Bijapur. But, this time these lands are located in interior places and there is not much value for the dry land, the official said.

The district administration is likely to convene one more meeting soon in consultation with the district in-charge minister very soon to finalise the land, he said.

The farmers are also unhappy that they have not been consulted while deciding to set up the plant. The farmers say they are not opposed to the project, but are unhappy that the government has not fixed the right price for their land.

It may be recalled here that the proposed function to lay the foundation stone for the project, scheduled for April 3 was indefinitely postponed in view of the protest by farmers. The state government was yet to fix the land prices for the project.

The NTPC will invest Rs 20,000 crore on the project which will have three units of 800-Mw capacity each in the first phase. In the second phase, two more units with 800-Mw capacity each will come up. The state proposes to supply 5.2 tmc ft water from the Alamatti Dam for the project.