The Maharashtra Industrial Development Corporation (MIDC) has mandated Reliance Energy (REL) to set up 100 mw group captive power plants (GCPP) in the industrial estates of Thane-Belapur and Butibori-Hingna to cater to units suffering from erratic and poor quality power supply."We have evaluated all the request for proposals and have selected REL for setting up GCPPS in both the industrial areas," MIDC CEO Satish Gavai said today.Gavai said the projects would be operational by the second half of 2006.The two projects, with an aggregate cost outlay of Rs 700 crore, are part of MIDC's initiative to tide over frequent power cuts by the Maharashtra State Electricity Board (MSEB) in industrial areas."The provisions of the electricity act, 2003 allow industries to set up captive power plants for generating power for their own use. MIDC decided to take advantage of this provision by facilitating setting up GCCPS at estates in neighbouring thane district and the other near Nagpur", he said.The GCCPS would be run with active participation of the consumers and a special purpose vehicle (SPV) would be floated, he added.Consumers would hold 26% equity while the balance would be held by the generating company REL, which would be free to raise additional capital from the market.
