Jain Energy Ltd, one of the group companies, will execute the project, which is likely to be commissioned by 2012. The company will invest Rs 5,000 crore. Work will commence from early next year.
In a statement to Business Standard, the company's chairperson said this was the company's latest project in the power sector and the Madhya Pradesh government had assured the firm full co-operation. "This project is part of our plan of setting up 5,000 Mw power plants in the country in the next five years," he said.
Jain Energy Ltd is also setting up a 1,000-Mw coal-based power plant in Chhattisgarh. The plant will be set up at Balpur in Janjgir-Champa district. Additionally it is also in talks with the governments of Orissa, Jharkhand and West Bengal for setting up similar projects.Jain Energy has also given an expression of interest for hydro power projects in Arunachal Pradesh and Bhutan.
As many as 23 power companies including Reliance Energy, Essar, Tata, Lanco and the Sanghi group have proposed to set up thermal power plants in Sidhi district. However, land acquisition is the biggest issue for them.
On the one hand, while big firms like Reliance Energy are awaiting various clearances like land acquisition for ultra mega power projects of 4,000 Mw, Lanco and Sanghi are yet to get nod from the state government on land acquisition and environment clearances and assurance on water supply.
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None of the companies that had signed deals with the state government last year in January in Khajuraho has started work on the proposed projects.
The Jain Group is a fast-growing business conglomerate with infrastructure as its core business and verticals like Jain Infraprojects, Jain Steel and Power, Jain Energy, and Jain Realty. Jain Infraprojects, the flagship venture of the Jain Group, commenced operations in 2002.