Jindal India Thermal Power Limited, which is setting up a 1200MW power plant at Dereng village near Talcher, has recorded a cost escalation of about Rs 300 crore due to the eight-month delay in the beginning of its construction work.
The construction work was expected to start in January 2009, but it is yet to take off due to opposition by the land losers.
Company officials feared that they may not be able to complete the project by 2010.The company has so far made two abortive attempts to start construction.
In June this year, the company tried to initiate the dozing works on the site but had to back out because of the opposition of the locals.
Moreover on Wednesday, the company authorities reached the site of the project with armed police led by the local sub collector but had to return without starting the construction work Hundreds of land losers of Ghantianali and Derang villages opposed the project demanding fulfillment of their demands.
Efforts to persuade the agitating locals by the administration and the company officials have failed to yield any result.The main demand of the villagers include a job to each of the affected families and Rs 15 lakh as cash to each oustee.
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The locals had also demanded that the youths above 18 years of age should be treated as a separate family as per the guidelines of the rehabilitation and resettlement (R & R) policy of the state government.
Company authorities claimed they had already paid compensation to more than 90 per cent of the land losers at a price of Rs 7.45 lakh per acre.
The remaining land oustees could not draw their compensation due to their internal disputes, the company officials said.