The controversy on the safety aspects of transporting Naphtha 700 kms byroad from Visakhapatnam notwithstanding, the increasing cost of the fuel hasmade the project unviable, the NTPC souther region executive director, APRamaswamy said on Monday.

While the risk assessment study for the combined cycle power project by TataConsultancy remains to be completed, the official felt that the Hyderabadmetro project would not be feasible in the present scenario. The safetyaspects apart, the cost of the power generated would be prohibitive, he felt.However, no formal decision on the future of the project had been taken yet,Ramaswamy clarified talking to press persons while giving the performancehighlights of NTPC's southern region.

The project, which was estimated to cost a little over Rs 2,000 crore whenconceived nearly three years back, has already been granted the clearance bythe union ministry of environment and forests though the AP PollutionControl Board has in the meantime raised objections stating a threat to thenearby Singur reservoir.

Though a proposal to shift the project to Visakhapatnam due the safety andenvironmental aspects, being a politically sensitive project, the NChandrababu Naidu administration has been keen to have in the vicinity ofHyderabad itself.

The fuel linkage for the project from the HPCL refinery at Visakhapatnam wasalso cleared while it was posed to the German KFW for funding.

In the meantime, however, NTPC is likely to commission the 1000mw Simhadrisuper thermal power project several months ahead of schedule with works onthe prestigious project advancing at a fast clip, Ramaswamy said.

The project coming up 40kms from Visakhapatnam in Andhra Pradesh is NTPC'sfirst coast based thermal plant and is being implemented at a totalinvestment of Rs 3,650 crore.