State run, NTPC has indicated that it might be forced to downsize its Katwa project in West Bengal by about half its size so as to be able to construct the facility within the available
550 acres of land that has been allotted to the company by the state government.

NTPC chairman Arup Roy Choudhury said that if the company received another 250 acres of land at another nearby location it would set up the facility as per original plans. The company wants adequate land to set up the ash pond in order to be able to secure an approval from the environmental authorities.

"Options available include downsizing capacity from the proposed 1,600 mw to 800 mw or if the government could give us some 250 acres additional land nearby, the project could be undertaken. However, we cannot set up 1,600 mw over the 550 acres that have been given to us but we do not want to abandon the project," Choudhury said.

He also said that the facility needs 7.5 MT of coal annually as the state government has surrendered the mines at Dhamagaria that were originally expected to supply coal for the project. Many say that the project indicates that the government does not pay due attention to the issues faced by the industry.

Company officials have met state government officials to discuss the project but there has not been as decision on the fate of the project in the state. The state government said that it will not acquire any land for the industry and the companies must acquire land directly from the farmers.