Tata Power to set up thermal power proj in Orissa

Mumbai, Sep 26: Tata Power Company Limited today announced the signing of a MoU with the Government of Orissa for the development of a 1,000 MW coal-based power project with captive coal mining facilities estimated to cost Rs 4,300 crore.

With this, Tata Power seeks to foray into Orissa and the project will be set up at Naraj Marthapur in Cuttack, said the company's release issued here.

Another 1,000 MW is expected to come up as the second phase of project development and will take the total capacity to 2,000 MW with an estimated investment of Rs 9,000 crore, the release added.

The MoU signifies the intent of the Orissa Government for rapid industrialization and prosperity of the State and its people.

Towards this end, the State Government there has sought to extend comprehensive assistance to the power project through active participation.

The government will assist Tata Power for single window clearances and approvals. The government will also recommend to the Central Government for allocation of captive coal blocks or will assist in necessary coal linkages for the project. A Government of Orissa nominated agency will purchase a portion of the power generated, for which a PPA is to be subsequently signed.

Being a mega power project, Tata Power will also sell power to distribution entities from the other States. It will also serve the power requirements of Tata Steel's proposed steel plant in the State as well as certain large industrial units in Orissa.

According to Mr Adi Engineer, Director, Tata Power, the MoU with the Orissa Government follows a similar successful MoU signed with the Government of Maharashtra, towards which it has invited bids for over 2,000 MW coastal power plants.

UNI