The Andhra Pradesh government on Saturday decided to cancel land allotment for the controversial thermal power plant in Srikakulam district.
The state cabinet at its meeting here decided to cancel the order allotting 972 acres of land to Nagarjuna Construction Company (NCC) for setting up the power project at Sompeta in Srikakulam district.
The cabinet, however, said the company can use the same land for setting up agri-based industries instead.
Labour Minister K. Atchannaidu told reporters after the cabinet meeting that it was decided to cancel the land allotment for the power project made by the then Congress government in 2008.
The NCC was allotted the land for setting up 2,640 MW plant. However, fishermen and farmers had been opposing the project on the ground that it will snatch their livelihood.
Environmentalists were also opposing the project as it was coming up on a wetland.
Three people were killed in 2010 when police opened fire on agitating fishermen and farmers.
However, the locals are not celebrating just yet and want to see the Government Order first. They have also refused to end their relay hunger strike, which entered the 2094th day on Saturday, till then.
"People are skeptical and want to see the government order before breaking into celebrations," said president of the Paryavarana Parirakshana Samithi (PPS) Y Krishnamurthy, told Times of India.
The Telugu Desam Party (TDP) during the poll campaign last year had promised to cancel the project.
The cabinet also decided to set up special courts to try corruption cases and seize the property of those involved in corruption cases. It was also decided to seize the property of red sander smugglers.