Maharashtra asks Reliance Energy to scale down Shahpur plan

The Maharashtra government has asked Reliance Energy Ltd (REL) to scale down its project at Shahpur village in Raigadh district.

This, the government hopes, will help resolve the dispute between Tata Power Company (TPC) and REL over a 1,300-acre plot in the village where both want to set up plants.

While TPC proposed a 1,600-Mw project on the plot, REL planned to set up two projects "� a coal-based plant for generating 1,200 Mw and a gas-based plant for 2,800 Mw. The state government has now asked REL to drop the gas-based project.

State government sources said the site was not suitable for gas-based power projects as there was no major gas pipeline in the area. REL executives refused comment.

However, REL had been assured that it would be given all help for setting up power plants anywhere else, sources added.

REL had approached the state revenue department for acquiring 3,460 acres under the Land Acquisition Act, 1894. Tata Power simultaneously approached the Maharashtra Industrial Development Corporation (MIDC) to acquire 1,317 acres under the MIDC Act. Both were allotted the same plot.