Tata Power signs MoU with Government of Chhattisgarh for 1000 MW Mega Power Project

Tata Power Company Ltd on January 24, 2007 has announced that the Company has signed a MoU with the Government of Chhattisgarh for the setting up of a 1000 MW coal fired mega power plant in the State. The project is estimated to entail an investment of Rs 5000 crores and will require approximately 1200-1300 acres of land. On the basis of preliminary feasibility study, a suitable site in the Raigarh district of the State has been identified. The Company is now in the process of carrying out a detailed feasibility study for the project.

The Government of Chhattisgarh has actively sought private sector participation towards improving infrastructure and taking substantial initiatives towards economic progress of its people on the back of inherent natural advantages of the State. To this end, the State has sought to provide comprehensive cooperation to Tata Power in acquiring necessary clearances and approvals that fall under the purview of State Government and also facilitate the allotment of captive coal mining facilities for necessary coal linkages. The power from this Independent Power Project will be sold substantially to distribution Companies in the aforesaid region.

Speaking on the occasion, Mr. Prasad Menon, Managing Director of the Company said, "We are happy to make our maiden foray into the State of Chhattisgarh. We believe this will be the beginning of a long and mutually beneficial relationship. This agreement signifies Tata Power’s commitment towards the State of Chhattisgarh for bridging the power requirements of the state and the country. With this M0U, Tata Power has taken another step towards its growth plans and increasing its national footprint."

The Company has been recently awarded a Letter of Intent (LoI) for 4000 MW Ultra Mega Power Project based on imported coal at Mundra, Gujarat. The Company has also inked similar MoUs with the Government of Orissa for a 1000 MW thermal project and with the Government of Maharashtra for an over 2000 MW coastal power project, towards which it has already invited bids. The Company has also done ground-breaking on the 1,000 MW Maithon Right Bank project in Jharkhand and is currently setting up 350 MW of additional capacity to address the power needs of Mumbai.

Source : Equity Bulls

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