Karnataka   

Suzlon's SEZ project runs into trouble

Special Correspondent

NTPC seeks Rs. 59-crore compensation from Government

Bangalore: One of the planned Special Economic Zone (SEZ) projects in Karnataka has run into trouble with public sector power utility NTPC Ltd. seeking a Rs. 59-crore compensation from the State Government for transferring land near Mangalore that was originally allotted to it to the multinational Suzlon Infrastructure Ltd. (SIL) for setting up an SEZ.

NTPC has contended in an official communication that the State Government has given approval to a multinational company (Suzlon) for setting up a windmill manufacturing unit on the land at Padubidri that was acquired by NTPC for its Mangalore Super Thermal Power Station (STPP) and that the KIADB has recently conducted revenue survey at NTPC's Mangalore STPP site and its vicinity. NTPC has pointed out that its consent was essential for any activity to take place on the 398.07 acres of land, the communication said.

Suzlon's proposal to set up a SEZ for hi-tech engineering industries in Mangalore spread over 500 acres of land at an investment of Rs. 246 crore has been cleared by the Centre's Board of Approval and the State High Level Clearance Committee headed by the Chief Minister.

A spokesperson for Suzlon declined to comment on NTPC's demand for compensation of land and said that it was awaiting allocation of land for the SEZ from the State Government.

NTPC's demand for compensation was made on the basis of the tripartite agreement entered into between the PSU, the Ministry of Power and the Karnataka Government in 1996 under which the State Government had agreed to compensate NTPC Rs. 21 crore in the event of sale of land and other related expenditure.

NTPC was allotted 97.25 acres of land out of the 398.07 acres that was acquired for setting up the power plant in 1993.

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