Mumbai, Apr 19: Maharashtra Industrial Development Corporation (MIDC) has tied up with Reliance Energy (REL) for setting up two group captive power projects (GCPP) of 165 megawatt and 130 MW capacity in the industrial belts of Thane and Nagpur districts.
Under the agreement, signed here yesterday, the natural gas-based 165 MW plant will cater to consumers in Thane and Navi Mumbai, while the 130 MW plant will meet needs of users in Butibori industrial belt in outskirts of Nagpur.
Speaking on the occasion, State Industries Minister Ashok Chavan said the initiative will meet the power requirements of industrial consumers and improve the business opportunities and development potential of the regions.
MIDC CEO Rajiv Jalota said REL was selected on the basis of the expression of interest (EOI) sent by them in June, 2004 to developers for setting up GCPP with a minimum capacity of 100 MW.
Based on the technical and financial evaluation criteria of MIDC, Reliance Energy was selected as an implementing agency through the process of competitive bidding for both the projects, he added.
REL director (business development) J P Chalasani said the company will incorporate two special purpose vehicles (SPVs), along with industrial consumers, for both the industrial areas to execute the projects. The SPVs will hold necessary equity requirements of both REL and the industrial consumers, as per the requirement to qualify for GCPP.
GCPP envisages a power plant set up to generate electricity, primarily for own consumption, where not less than 26 per cent of ownership is held by the captive users, and not less than 51 per cent of aggregate electricity generated on annual basis is consumed for captive use.