Tesco has relaunched its plans for a new supermarket and housing complex on the former Ministry of Defence site next to Tolworth station.

It says its planning application is for one of Europe's "greenest" developments which will transform Tolworth into a vibrant new community and create more than 550 jobs at all levels.

The development includes a Tesco store, 662 new homes - of which half will be affordable housing, community facilities and a "landmark green bridge".

But Tolworth Residents against Over Development (Trod) have attacked the proposal, saying it sidesteps the council's unitary development plan and does nothing to ease the concerns of local residents.

For its part, Tesco maintains that, by using the latest combined heat and power technology, the scheme will be an exemplar of "green" development - and one of the best in Europe. Combined heat and power technology will capitalise on the complementary uses across the site, resulting in significant energy savings and reductions in CO2 emissions, it says.

The proposals will also create a better link between the station and The Broadway, via a landscaped walkway, it claims.

As part of the plans, there will be significant money available to improve The Broadway and make it a better shopping environment for local residents, says Tesco.

"Our aim is to ensure local residents remain in the area to do their main food shopping, providing a boost to other businesses and acting as a catalyst for further investment in Tolworth," said Katherine Edwards, the store's corporate affairs manager.

"This is the start of a thorough planning process and we will continue to seek a diverse range of views as the proposals progress through the planning system.

"We will be meeting local groups, resident associations and holding another public exhibition to make sure as many people as possible can learn about and comment on the plans."

But David Marks, co-ordinator of Trod said the changes had done nothing to quell its concerns: "Our worries are still as grave as ever. The council's unitary development plan (UDP) states the area is not fit for commercial use. A Tesco store will damage the vitality of The Broadway."

A spokeswoman for the council confirmed appropriate uses for the site, as outlined in the UDP, did not include retail. They are: "residential, including affordable/special needs housing and community facilities.

"Hotel, offices and transport interchange facilities are also given as appropriate uses on the Kingston Road frontage."

Tesco's plan includes units which reach 11 or 12 storeys, which tower above the council's three-storey limit for buildings in the area (excepting Tolworth Tower).

Furthermore, when Tesco bought the site from the Government in 2002, the council wrote in the site's planning brief that it is not "an appropriate location for major retail development".

The planning application will reveal that the number of new homes on the site has been reduced from 835 to 662 - half of which will be affordable housing.

Of the 331 affordable homes, 70 per cent will be social rent housing and 30 per cent intermediate key worker shared-ownership housing. Tesco propose 436 parking spaces for residents' use and 559 for customers.

This has sparked outrage among residents, who believe Tesco should have reduced the size of its store, rather than the number of houses.

Ray Broom, from Surbiton said: "This plan sounds even worse. The only good thing about the last idea was the provision of extra housing which would have been good for Tolworth Broadway.

"I just cannot see the point of building an enormous Tesco when there is already one down the road in New Malden - it will kill the Broadway."

Kiran Shah, who runs Selecta Fruits, a specialist Indian greengrocers, on Tolworth Broadway thinks the new Tesco store could be disastrous for local independent businesses. He said: "Tesco stocks everything we have at very competitive prices, so it is hard for us as an independent business to keep up."