Work starts at Rosa power plant

Construction for Stage I of the Rs 2,641 crore 600 Mw Rosa thermal power project, promoted ADAG's Reliance Energy Ltd (REL), has started.

A spokesman of REL said work began on February 28 and would be completed on time. The project, languishing for nearly 20 years, has made quick progress since REL took it over from the Aditya Birla group.

The spokesman said: "REL has committed itself to completing the project and commencing power generation within the timeframe promised by the company to the power regulator, UP State Electricity Regulatory Commission."

The state government in November last year approved the upgrade of the coal-based Rosa thermal power plant from 600 Mw to 1,200 Mw, soon after REL acquired the Rosa Power Supply Company from the Aditya Birla group.

The increase in the installed capacity of the thermal plant, located in Shahjahanpur district, on the Lucknow-Delhi national highway, will enable UP to buy electricity from REL at 12 paise per unit less than the market rate. REL had agreed to sell power to UP at Rs 2.15 per unit from the Rosa unit.

Of the additional 600 Mw to be generated, 300 Mw will be sent out of the state.

On November 12, UP Power Corporation Ltd (UPPCL) signed a power purchase agreement with REL on buying power from the |Rosa plant. Soon after signing the PPA, the state's Energy Task Force approved the application of REL for increase in the capacity of the plant from 600 Mw to 1,200 Mw.

The state government will provide a 30 per cent rebate on the additional land to be acquired by the REL for the project, while it also waived entry tax and trade tax for 12 years.

The UP State Industrial Development Corporation had acquired 450 acres for the Rosa project over a decade ago. The land also was transferred to Rosa Power Company.