HYDERABAD: In a setback to Andhra Pradesh government, the state high court Thursday stayed a government order allotting land to a thermal power project in Srikakulam district of north coastal Andhra.Dealing with the petitions filed by some environmentalists and farmers challenging the land allotment, the court stayed the order issued in 2008, said K.S. Murthy, a counsel of one of the petitioners.Justice N. Ramamohan Rao, in his interim orders, directed the Nagarjuna Construction Company (NCC) not to undertake any construction activity at the project site.Under the order issued Sep 15, 2008, the state government had allotted 972 acres of land to the company, which proposed to develop a 2,640 MW plant at Sompeta at a cost of Rs.12,000 crore.The court issued notices to the state government, the firm and others and asked them to file replies in six weeks.Local communities and the environmental groups have been opposing the project on the ground that it is coming up on a wetland. They argued that the project not only threatens the ecology but also endangers the livelihood of fishermen and farmers.In addition to 972 acres allotted by the government, NCC Power Projects Ltd (NCCPPL), a subsidiary of (NCC Limited had also purchased 573 acres of land from private owners for setting up the plant.The National Environment Appellate Authority (NEAA) on July 14, 2010 had cancelled environmental clearance for the project on the ground that it was given in violation of norms.The NEAA order had come a day after three protesters were killed in police firing on people protesting against the project at Sompeta.Krishna Murthy, president of Paryavarana Parirakshana Sangham (PPS), which is spearheading the movement against the project, hailed the high court order and described it as "a victory of the people".
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