To meet the increasing power demand in the state, Andhra Pradesh Power Development Company Limited (APPDCL) planned two Mega Power Projects on fast track basis. These two power plants are; one at Krishnapatnam, in Nellore District and other one in Karimnagar. The plant located at Nellatur village near Krishnapatnam is of Coal based Super Critical Thermal Power Station of 1600 MW (2 x 800 MW). The plant proposed plant at Karimnagar will be gas based combined Cycle Power Plant .
Among these two plants, the foundation stone for the power plant at Krishnapatnam was laid down by the Congress president and UPA chairperson Ms. Sonia Gandhi in 2008. The Andhra Pradesh state cabinet took the decision to name the plant after a Dalit leader Damodaram Sanjeevaiah for his significant contribution for the development of Andhra Pradesh state. Hence, the plant was named as Damodaram Sanjeevaiah Thermal Power Station . This project is being completed by AP Genco, a public sector power generating company of Andhra Pradesh. After its inauguration AP Genco was expecting that the power plant would be ready for generation by March of 2013 . However, its first unit has been started its operation and connected the Power Grid on March 31, 2014 and the second unit was expected to generate power by July 2014  Surrounding villages of the power plant staged demonstration in December 2011 during the construction of this project. The protestors blocked the plant and stalled the works at the Power Project. They had many demands including suitable compensation and rehabilitation packages for the land owners whose land has been acquired. Beside this they also demanded, regularization of jobs of contractual workers, increase of wages and employment for the local people. According to the protestors, during the land acquisition process, the land owners were assured jobs for local youth including at least one job per family of land looser, insurance coverage for elderly persons of the villages, and accident coverage for the family. However, government did not meet any of those above mentioned promises. Rather many jobs are given to the people from outside the villages. This is the main cause of agitation by the villagers and forced them to protest against the government’s lackadaisical attitude towards the land losers and contract workers .