Vedanta Group firm Sterlite Energy today said its 1,200 MW thermal power plant at Jharsuguda in Orissa will go on stream by September.
The commissioning will take Sterlite Energy's generation capacity to 2,400 MW in the same location.
"The Vedanta Group is engaged in commissioning 2,400 MW from the location; some 1,200 MW is already commissioned and the remaining is expected to go on stream by September 2011," a source said.
The two power plants along with another 1,215 MW plant, owned by Sterlite Energy's sister firm Vedanta Aluminium for captive use, will turn Jharsuguda into one of the single largest power generation locations in the country.
While Sterlite Energy's plants are independent power producers, Vedanta Aluminium's power plant is meant for firing its smelter.
Vedanta is setting up a 1.75 million tonne per annum smelter at Jharsuguda.
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"Huge coal reserves and abundant water make Jharsuguda an attractive destination for power generation. This apart, it is also well-connected with railways and roads," the source said justifying Vedanta Group firms' investment in the locality.
There are various medium to large scale aluminium, iron and steel units in the vicinity increases the power demand, he said, adding that the cost of capital in the region for putting up a power plant is also lower compared to the benchmark of $45-50 million per mega watt (MW).