Last week, two people protesting against the construction of a power plant on their land were killed in police firing at Srikakulam in Andhra Pradesh. The incident happened last Wednesday when workers of Nagarjuna Construction Company (NCCL) entering the site for preliminary work faced agitating villagers. But the protests came a year after the villagers had already sold their land at high prices to NCCL. To compound the problem, a year after the environment ministry cleared the 2,640 MW coal-based power project, the National Environment Appellate Authority (NEAA) has rejected the project.

Far from the industry-versus-agriculture debate in eastern India, trouble is brewing in coastal Sompeta, where political parties are rushing in to gain mileage.

In the town and around, even toddlers have picked up the Telugu term for ‘go back’, while adults like Theppala Kodandarao are determined that they will continue protests until the project land is taken back. ?Our struggle will stop only when the project goes from here,? said a farmer from the neighbouring Golagandi village, as he points to the green stretch which he says acts as a sink for water which they are fighting for.

But that piece of land does not belong to the villagers. As per district administration records, 1,000 acres of ?bela? (wasteland)?as the government record describes?were bought by NCCL from the state at Rs 80,000 an acre. District officials confirm that about a year ago, the villagers sold 400 acres more at an unconfirmed price of Rs 2.5 lakh per acre. ?They knew what they were selling for at that time,? the officials said.

The villagers do not want to discuss the sale now. ?If the plant comes up, we will lose our livelihood,? said Pollai Dilleshwari, a resident of Golagandi, where farmers also fish from water bodies. ?All of us depend on the bela from where we get water around the year.?

Supporting them are organisations like the National Alliance of Movement Against Coal Power. Shankar Sharma, a member of the alliance who cited environmental concerns, also opposes ultra-mega thermal power projects in Karnataka’s Tadadi and Maharashtra’s Girye.

The NEAA has since cancelled environment clearance for the Rs 12,000-crore plant, saying the clearance was based on incorrect information about the ecological impact on the bela. The NEAA inspection report says it is a wetland of ?great ecological importance and a source of water for the nearby villagers.?

At stake is a project that could account for more than half the additional power generation capacity projected by the state at 4,560 mw by 2012. Several power plants like Sompeta are coming up along the coast since they have easier access to imported coal and access to rail networks.

For the Hyderabad-based NCCL led by AVS Raju, which has interests in housing, power, irrigation and transportation, the fracas is a major setback. The group with reported revenues of Rs 5,897 crore as on March 31, 2010 ? a growth of about 23% over the previous year ? is banking on the project for much of its growth.

According to district collector N Srikant, the trouble occurred because the company did not attempt to communicate with the local people its plans for the plant. ?Right from the beginning, there has been a gap between the two parties,? he said.

An official with NCC Power Projects (NCCPPL), the subsidiary of NCC which proposed the project, said the company is now seeking legal opinion. Asked if the company is looking at an alternative site, the official said they still have time to appeal before considering other options. ?In all, we have 60-90 days for re-appealing and till that time, our fund -raising plans are on hold.?

EAS Sarma, former Union power secretary and one of the petitioners to NEAA on the Sompeta plant told FE: ?Most of the sites chosen in Andhra Pradesh are patently bad. While barren lands are not easily available, the best alternative is to save energy. If you save 5% of electricity in AP, one Sompeta can be saved.?

In Krishnapatnam district ? among India?s largest energy hubs with more than eight plants totalling 13,000 mw coming up there ? the state-run Andhra Pradesh Power Generation Corporation had rehabilitated an entire village, a state government official told FE on Monday.

Meanwhile, Sompeta and its surroundings have slipped into an uneasy calm. The remains of two burnt police jeeps greet visitors to the village. In the town?s main road and along some bylanes on duty, small groups of policemen squat around.

In a small shelter on the main street of Sompeta, a group of women young and old are on a relay protest that has now completed 220 days. They are from nearby villages and take turns to fast everyday.