Reliance Power plans to double the capacity of its coal-based Butibori power project to 600 MW.
The foundation stone for the 300-MW coal-based project was laid by Maharashtra Chief Minster Ashok Chavan today.
The project is being set up under the group's captive power projects model.
Vidarbha Industries Power, a special purpose vehicle (SPV), was launched by Reliance Power (R-Power) and local industries in the MIDC region of Nagpur and its surrounding areas to construct the first group captive power project in the region.
The fast-track project is expected to go on stream by 2011.
The power generated from this plant will be supplied first to the industries in the MIDC areas of Butibori and Hingna and other industrial areas in the region and the surplus power will be supplied to meet the shortfalls elsewhere through open access.
More than 200 industries in the industrial zone of Butibori and Hingna are expected to be the beneficiaries.
Speaking on the occasion, Chavan requested the company to double the capacity of the project, which was readily agreed to by the company's CEO Jayarama Chalasani. A 14-km long dedicated railway line is being laid from Sindhi to MIDC Butbori to bring coal being sourced from the Western Coalfields. This railway line will also be available to other industries in the area.