Maharashtra resolves land claims by REL, Tata Power

Anil Ambani-controlled Reliance Energy and Tata Power Company have resolved their feud over the land for setting up a power plant at Shahpur in the Raigad district of Maharashtra.

The 4,000 mw Shahpur project, according to Reliance Energy's draft red herring prospectus for an initial public offering of $2.5 billion filed with the Securities & Exchange Board of India, is its second most important project after Sasan Ultra Mega Power Project.

Tata Power and Reliance Energy got involved in the land slugfest as the Maharashtra government's two different agencies identified overlapping land for the two companies in Shahpur.

In 2005, the two companies signed a memorandum of understanding (MoU) with the Maharashtra government to set up the thermal power projects on the Konkan coast.

And MoUs with these companies was projected by the state government as ultimate solution to power-starved Maharashtra which is facing power shortage of around 5,000 mw.

Subsequently, while REL approached revenue department of the state government for land acquisition, TPC approached the state government's industrial infrastructure arm MIDC for their respective land requirements.

And both these agencies found the land at Shahpur village of Raigad district and few hundred acres of land identified by both the agencies was overlapping.

While REL wanted around 3,000 acres for its 4,000 mw plant, TPC wanted around 1,000 acres for its 1,600 mw plant.

Now as per the solution found by the state government, REL in the first phase will take up 1,400 mw coal-based project.

And after arrangements for gas being made by REL, the state government would help REL find land for 2,600 mw gas plant, said sources in the state government's energy ministry.