Telangana Chief Minister K. Chandrashekar Rao on Tuesday laid the foundation stone for a 600 MW thermal power plant in Adilabad district.
Singareni Collieries Company Limited (SCCL) is building the plant with an investment of Rs.3,750 crore in Pegadpally village in the coal belt of Jaipur in Adilabad district, about 300 km from here.
Two units of 600 MW each are already being developed by the public sector company in the same region.
The third phase will be completed and commissioned by December 2017. SCCL will complete the third unit by bringing in 30 percent equity and raising debts for the remaining 70 percent.
It is one of the projects expected to help the state overcome the existing electricity shortage. The chief minister had said on Monday that uninterrupted supply would become a reality in the state in three years.
Rao said Telangana would become a power surplus state in 2018 with total installed capacity of 23,000 MW.
Currently, power plants to generate 6,000 MW are being developed with an investment of Rs.36,000 crore.