Simhadri thermal power plant, has an installed capacity of 1,000 MW, was dedicated to the nation on February 2004 by the then Prime Minister, Mr Atal Behari Vajpayee. The plant supplies its entire power to the State grid of Andhra Pradesh.
In June 2012, a huge protest took place. Fisher folk and villagers from villages near the Simhadri thermal power plant of National Thermal Power Corporation staged protest in front of the plant demanding jobs in the power plant and Pharma City. They alleged that the fly ash from the power plant and effluents from the Pharma City were polluting the Bay of Bengal and affecting their livelihood as the catch declined drastically . More than 10 fishermen and others were injured while they were demonstrating. The demonstration turned violent as the fishermen started throwing stones at the Central Industrial Security Force (CISF) personnel. Then, the CISF opened several rounds of fire in the air to quell the mob at the project site. Fishermen from the nearby villages tried to stall pipeline-laying work for the seawater pump house project for second phase of NTPC Simhadri thermal project . Even school going children of four villages also joined the agitation and raised slogans against the management of NTPC and Pharma City, as well as students, who also took out a rally and burnt the NTPC Simhadri plant and Pharma City in effigy .