The Andhra Pradesh government on Saturday decided to cancel its order allotting 972 acres of land to NCC Limited for setting up a power project at Sompeta in Srikakulam district, saying the land can be used by the company to set up agri-based industries instead.

"The Cabinet took a decision to cancel the GO No. 1107 issued in 2008. The company had purchased the land through Andhra Pradesh Industrial Infrastructure Corporation. They can set up any agri-based multi-product industries there," Labour Minister K Atchannaidu told reporters after a Cabinet meeting.

Three persons were killed in police firing when a large group of farmers and fishermen, protested against setting up of 2640 MW (4×660 MW) thermal power project by NCC in July in 2010.

The company had acquired 972 acres of land allotted by the Andhra Pradesh government and 573 acres of land purchased from private owners specifically for the purpose of setting up of the Thermal Power Plant at Sompeta.

When contacted, NCC officials were not available for comments.