The Hindu : Andhra Pradesh / Visakhapatnam News : SBI asked not to advance loans to power projects

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Sunday, Aug 08, 2010
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Andhra Pradesh

Andhra Pradesh - Visakhapatnam

SBI asked not to advance loans to power projects

Special Correspondent

VISAKHAPATNAM: Forum for Better Visakha convener E.A.S. Sarma has urged SBI not to sanction any loan to thermal power plants in view of threat posed by them to the environment.In particular, Mr. Sarma in a representation to SBI Chairman, said the sites chosen at Sompeta by Nagarjuna Construction Company and Bhavanapadu by East Coast Energy Pvt. Ltd., both in Srikakulam district, were in wetlands of great ecological significance.

The National Environment Policy prohibits the diversion of such wetlands for industry. These projects will lead to loss of livelihoods, as the local fishing communities and many small cultivators are dependent on the wetlands. The local people were totally opposed to these projects, he pointed out.

The National Environment Appellate Authority recently quashed the environment clearance (EC) given for Sompeta. In the case of Bhavanapadu, NEAA has issued an interim order restricting the extent of land over which East Coast could carry out construction work. NEAA is about to pronounce a final order on this shortly.

The final clearance for the projects would depend on the outcome of the cases. Moreover, these projects would cause irreparable ecological damage, including increased green house gas emissions that affect the global climate.

Hence, he asked SBI not to advance any loan to these projects.

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