Tatas to set up 3,000-Mw unit in Jharkhand

Rs 12,000-cr pact signed with state.

Tata Power plans to set up a 3,000 Mw mega-power project in Jharkhand with an investment of around Rs 12,000 crore. The company, which signed an agreement with the Jharkhand government today, will also look at captive coal mining facilities in the state.

The mega-power project, which was likely to be split into smaller generation units, would come up at coal pitheads at several locations in the resource-rich state, said S Ramakrishnan, executive director, Tata Power.

Ramakrishnan told Business Standard that the locations were still to be finalised, but were likely to be at places like Ramgarh and Latehar where captive coal was available.

At present, Tata Power has an installed capacity of 248 Mw in Jharkhand. In addition, it has proposed to set up two more power plants in the state""a 120 Mw unit at Jojobera to be commissioned later this month and a 1000 Mw facility at Maithon, which is expected to go on stream in the next five years.

The company was seeking the mega-power project status for the 3000 Mw project and planned to sell around 75 per cent of generated power to power-deficit states like Delhi, Punjab, Rajasthan, Maharashtra and Gujarat, Ramakrishan said.

He added that as part of an MoU with the state, the company would also examine the distribution and transmission issues in Jharkhand. But he denied that the company was planning to get into the transmission and distribution business at the moment.

 "Right now, we have a mandate to conduct a study of these issues, including a study on whether it will be feasible for private sector players to enter the transmission and distribution business in Jharkhand. But any activity we get into on that front will not be a part of the current MoU."

Ramakrishnan said, "As part of our agreement, we will extend comprehensive assistance to the state in the areas of generation, transmission linkages and distribution through such incentives as single window clearance, recommendations to the central government for allocation of coal blocks and clearances like land, water and evacuation of power, as may be required to facilitate the project."

Tata Power is the largest private sector power producer in the country with an installed capacity of 2300 Mw, has seven more power projects on the anvil, of which five are in Maharashtra and two in Jharkhand.

POWER DEAL

The project is likely to be parceled out into smaller units, which will come up at coal pitheads

Tata Power is seeking a mega-power project status

It plans to sell around 75% of the generated power to Delhi, Punjab, Rajasthan, Maharashtra and Gujarat