Tata Power may set up 600mw plant in UP

Tata Power Ltd (TPL) has decided to set up a 600 mw hydel power plant in Uttar Pradesh (UP) at Shrinagar as part of its plan to augment its generation capacity by 3,600 mw over the next few years.

Other projects being considered are""a 1,000 mw thermal power plant in Delhi, a 1,000 mw thermal power plant on the coastal belt of Mumbai and another 1,000 mw unit at Maithon in collaboration with Damodar Valley Corporation.

Talking to reporters in Kolkata on Saturday, Ashok Uppal, senior general manager eastern region, TPL, said that the total cost of the UP hydel power project including rehabilitation, land and expenses on building a dam is expected to be around Rs 1,500 crore.

"We are awaiting the board's clearance for financial closure following which the project would commence. The project plan has been given to the board and we are awaiting clearance," he explained.

TPL was earlier looking at the possibility of setting up a 1,000 mw thermal plant in Delhi but slow progress on allotment of land forced the company to look for alternative locations "" preferably UP. Although the company has not given up its plan of setting up a plant in Delhi, it has decided to set up the Shrinagar plant in the meantime.

Earlier the company was looking at the possibility of setting up a 1,000 mw thermal plant in UP at Singrauli, but has recently decided on investing in a hydel plant to augment its generation capacity.

About progress at Maithon, Uppal said that the company has already acquired 950 acre in two stages including 450 acre of forest land. It will also require additional 200 acre from the local inhabitants totaling 1,100 acre.

"Tata Power has recently initiated a second round of due-diligence at the Maithon project and a final estimation of the project cost was yet to be worked out. With a reduction in the cost of setting up thermal power plant, the project cost is likely to be revised downwards," said sources close to the development.

Talking about the Mumbai project, Uppal said that the plant would run on imported coal for which it was looking at the possibility of setting up a plant in coastal belts so that it could save on transportation cost.

Meanwhile, TPL has applied for five coal blocks""three in Jharkhand, and one each in Andhra Pradesh and Orissa.

At present, TPL has a total generation capacity of 2,300 mw and 430 mw in Jojobera in Jamshedpur.