R-Power puts Maharashtra gas-based unit on fast track

Reliance Power plans to make Maharashtra the action ground for gas-based power generation. The Anil Ambani group company plans to set up a 4,000-Mw, gas-based power plant in Maharashtra with an investment of Rs 15,000 crore.

The company has received bids for the equipment supply and construction and is expected to finalise the contract in a few weeks, an R-Power executive said. The power plant at Shahapur in Raigarh district has requisite approvals, including environmental clearance and land acquisition, in place. In fact, this project has progressed faster than its much-mentioned one at Dadri, UP.

A company spokesperson confirmed Maharashtra was one of the locations the company was considering for setting up gas-based power plants. With the supply agreement with Reliance Industries (RIL) to be finalised soon, the Shahapur plant could be commissioned in the next 18-24 months, said the executive, who did not want to be named.

The state government has made water allocation for the project. “Preliminary infrastructure work has been completed and the construction will commence immediately after gas allocation is made. The main objective is to get started with the power project once gas agreement with RIL is signed. The plant capacity would be gradually ramped up to 4,000 Mw,” he said. The company expects gas for the project to be allocated from the KG-D6 gas fields through this East-West pipeline. The plant site is near the gas pipeline.

Based on 28 mscmd gas allocation per day from RIL, the company would have a power generation capacity of 8,000 Mw. Its 7,840-Mw capacity power plant at Dadri has been facing land acquisition problems. There have been reports that the capacity of the Dadri plant would be reduced, but the company has not come out with any final view on this issue.

After a prolonged legal battle over gas, the Supreme Court had asked RIL and ADAG group company Reliance Natural Resources to renegotiate their gas supply agreement in eight weeks time.

R-Power will also acquire 433 Mw of power generation assets from group company Reliance Infrastructure. The transfer of assets has been valued at Rs 1,095 crore. The 433 Mw of generation capacity owned by Reliance Infrastructure comprises 220 Mw at Samalkot in Andhra Pradesh where the company is already getting supply from D6, 165 Mw in Kerala and 48 Mw in Goa. Reliance Power is implementing power projects with aggregate capacity of over 35,000 Mw.