Gaya, May 9: The yearlong deadlock over the Nabinagar power project has finally been broken.

The foundation stone for the project, a joint venture between the National Thermal Power Corporation (NTPC) and Bihar State Electricity Board, was laid at a ceremony performed on the land in Nabinagar (Aurangabad) on Sunday.

The mega-project, to be built in two phases — 3x660MW in the first and 2x660MW in the second — is coming up under the aegis of the Nabinagar Power Generating Company — the entity born out of the joint venture.

The government has already acquired 1,871 acres of land out of the 2,832 acres required to set up the project.

The deadlock has been over the remaining 961 acres over which a section of local residents has claimed ownership rights.

The project, a dream venture of chief minister Nitish Kumar, is expected to ease Bihar’s considerable power problems. Under the agreement, at least 50 per cent of the electricity generated from Nabinagar will be used to power Bihar.

NTPC chief executive officer Toofani Ram told The Telegraph that initially, the deadline for completion of the project was fixed for 2014-15. However, owing to the deadlock, it was now likely to be completed by 2015-16.

After the foundation laying ceremony yesterday, levelling work of the land has started. This land would be used primarily to construct quarters for the staff and erect the boundary wall.

The deadlock erupted in January when farmers launched an agitation against the land acquisition process.

The reluctant farmers were demanding compensation for the 961 acres of Gair Mazarua Khas (GMK) land, government job, land against land and enhanced rate per acre.

On March 4, following the initiative of the chief minister, the government prepared a policy that raised hopes of a breakthrough.

Under the new policy, farmers having possession of GMK land will also get benefits. They will have to produce documents proving possession of such land for more than 30 years. Once they do so, they will be accorded benefits in accordance with the policy.

A meeting was held on April 25 at which the farmers agreed to end the deadlock.