Anil Ambani’s Reliance Power today started power generation at its Rs 6,000-crore Rosa Power Project in Shahjahanpur district of Uttar Pradesh.

The coal-based 1,200 Mw project comprises two stages of 600 Mw each. While, the first phase consisting of two units would reach its optimum power generation in the next few weeks, the second phase is expected to go full steam by March 2012.

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“When the Rosa Project reaches full steam, it would account for almost 30 per cent of the total thermal power generation in UP,” Reliance Power CEO J P Chalasani said at a conference call here.

UP is facing power crisis with the total power availability with the UP Power Corporation Limited (UPPCL) being under 6,500 Mw against the demand of around 10,000 Mw.

The fuel for the project would be transported from Central Coalfield Limited (CCL) in Jharkhand under a long-term contract valid for the entire plant life of 25 years.

“The project will lead to considerable reduction in load generation for the northern grid as Shahjahanpur is a load sector due to the presence of industrial units here and absence of any power plant. Rosa Power Project will provide stability to the grid by reducing transmission losses,” he added.

Besides, the company will utilise the fly ash produced at the plant in a cement unit run by the Anil Dhirubhai Ambani Group (ADAG) on the lines of Sasan power project in Madhya Pradesh.

Stage I of the project will supply entire 600 Mw to UPPCL for which a Power Purchase Agreement (PPA) was signed in November 2006. Stage II would supply 300 Mw to UPPCL and balance 300 Mw power will be sold on merchant basis.

The project has been allotted 75 cusecs of water from Garrah river, which is a tributary of the Ganga.

Although, the project has started generation and power supply to UPPCL at a tariff of around Rs 2.30/unit, the project will reach commercial operation only a couple of months later when the trial run is completed.

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