Tata Power signs MoU with the Orissa Govrnment for 1000 MW Thermal Power Project

Tata Power Company Ltd on September 26, 2006, has announced the signing of a MoU with the Government of Orissa for the development of a 1000 MW coal-based power project with captive coat mining facilities. The project is estimated to entail an investment of around Rs 4,300 crores and will be set up at Naraj Marthapur in Cuttack. Another 1000 MW is expected to come up as the second phase of project development and will take the total capacity to 2000 MW with an estimated investment of Rs 9000 crores.

The Agreement signifies the intent of the Government of Orissa for rapid industrialization and prosperity of the State and its people. Towards this end, the Government of Orissa has sought to extend comprehensive assistance to the power Project through active participation. The government will assist the Company for single window clearances and approvals. The Government of Orissa will also recommend to the Central Government for allocation of captive coal blocks or will assist in necessary coal linkages for the project. A Government of Orissa nominated agency will purchase a portion of the power generated, for which a PPA is to be subsequently signed. Being a Mega Power Project, the Company will also sell power to distribution entities from the other States. The Company will also serve the power requirements of Tata Steel’s proposed steel plant in the State as well as certain large industrial units in Orissa.

Mr Add Engineer, Director, of the Company, said, "The MoU signifies a beginning of a new relationship between Tata Power and the Government of Orissa towards bridging the power requirements of the state and the country. With this MoU, Tata Power has taken another step towards its growth plans and increasing its national footprint. The agreement also reiterates the commitment of the Tata Group towards the State of Orissa."

Mr S Ramakrishnan, Executive Director, of the Company, said that "As India’s Largest private power sector utility, we believe that joint co-operation with the government is essential in meeting the targeted demand for power in the country. The MoU highlights the commitment of Tata Power to the State of Orissa and commends theft excellent cooperation provided by the State Government."

The MoU with the Government of Orissa follows a similar successful MoU signed with the Government of Maharashtra, towards which the Company has invited bids for over 2000 MW coastal power plants.

Source : Equity Bulls

Keywords