Lanco power project delayed due to land problems

The problems in land acquisition are likely to delay the commissioning of the 1320 Mw Lanco Babandh power plant in Dhenkanal district by about a year.

According to sources, the project will go on stream by the end of 2012, instead of 2011 stipulated in the Memorandum of Understanding with the state government. This is because the company could not start work on the project in 2009 as per the schedule due to land problems.

Lanco was among the first batch of Independent Power Producers (IPPs) who had signed MOUs with the state government in 2006. One assuring fact is that the project proponents have already purchased about 500 acres of tenancy land out of total requirement of more than 1100 acre without going for land acquisition under the act. They have performed bhumi puja in July this year on the acquired land.

For the remaining land, the company intends to depend on the state government. The 4(1) and 6(1) notification under the land acquisition act are already over for that purpose, said the district administration officials.

But the land acquisition work has hit a road block as most of this remaining land come under the ayacut (irrigated ) area of Rengali Irrigation Project.

The state government has directed Dhenkanal district administration not to acquire or allow direct purchase of ayacut land till permission is granted to do so.

The state Water Resource department had come under severe criticism from different quarters, particularly the local BJP leadership, over its permission to allow GMR Power Company to acquire ayacut land.

Out of two villages Kurunti and Kharagpradsad, where land will be acquired for Lanco project, all the 732 acres belonging to Kharadprasad are ayacut land.

The government order not to acquire ayacut land has disappointed the company authorities who feel discriminated .They are of the view that if another IPP (GMR) in a nearby location is allowed to acquire 455 hectare of ayacut land, then why they should be barred to do so, pointed out a company official.