The Hindu : Business : ADAG to set up power plant in Orissa

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Saturday, Jul 22, 2006

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ADAG to set up power plant in Orissa

Prafulla Das

Plans to invest Rs. 60,000 crore in mega project

— Photo: Ashoke Chakrabarty

ORISSA POWER: Anil Dhirubhai Ambani Group Chairman, Anil Ambani (left), and Chief Minister of Orissa, Naveen Patnaik, at a press conference in Bhubaneswar on Friday.

BHUBANESWAR: The Chairman of the Anil Dhirubhai Ambani Group (ADAG), Anil Ambani, on Friday announced plans to set up a 12,000 MW thermal power plant in Orissa. The proposed plant will be the largest single location thermal power plant in the world.

The mega plant would be established at Hirma in Jharsuguda district with an investment of over Rs. 50,000 crore, Mr. Ambani said. Besides, a sum of Rs. 10,000 crore would be invested for transmission and evacuation of power.

A joint communiqué for the power project was signed at the State Secretariat here in the presence of the Chief Minister, Naveen Patnaik, and Mr. Ambani. The function followed a meeting between Mr. Patnaik and Mr. Ambani.

A formal memorandum of understanding (MoU) for the project will be signed after the submission of a techno-feasibility report by Reliance Energy Generation Limited (REGL), a subsidiary of the group. The power plant would be established in phases and 4,000 MW capacity would be installed in the first phase with an investment of Rs. 18,000 crore, Mr. Ambani said.

Reliance Health Ltd., another subsidiary of the group, would set up a Health City in Bhubaneswar with an investment of Rs. 500 crore, he said.

Mr. Ambani said the third project would be an institute of higher learning in information technology (IT) to be set up in Bhubaneswar. The institute would be run on a non-profit basis. Joint communiqués for the IT and health projects were signed simultaneously.

Welcoming Mr. Ambani's plans, Mr. Patnaik said a Task Force comprising officials of the State Government and the ADAG would be constituted to take forward the ventures. The State Government would provide the necessary support to the three projects.

On his part, Mr. Ambani assured the State Government that all care would be taken with regard to the rehabilitation of the people who would be displaced by the power project. Mr. Patnaik and Mr. Ambani also discussed issues pertaining to the three power distribution companies of REGL that are operating in the State.

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