Reliance group company BSES Ltd proposes to set up a 1,000- 2,000 MW thermal power station around the capital, entailing a minimum investment of about Rs 3,000 crore (Rs 30 billion).
"We are currently exploring various options to set up a gas-based thermal power station at a location in and around New Delhi," director (business development) J P Chalasani told PTI in New Delhi on the sidelines of a ceremony to commission a grid substation.
Chalasani said the company's board had granted in-principle approval to the project and the company was now looking at possible sites for locating the project.
He said the plant would require an investment of about Rs 3,000 crore at the least for a capacity of 1,000 MW.
BSES Ltd, now rechristened Reliance Energy, is identifying sites in Haryana, Uttar Pradesh and Delhi for the project for which it would draw on gas reserves recently discovered in the KG Basin, he added.
The energy would be used primarily to supply its existing and future distribution networks in and around the capital region. BSES acquired majority stake in two distribution networks in Delhi following last year's privatisation of the business.
The proposal comes close on the heels of Tata Power -- the third distribution license holder -- announcing plans for establishing a plant with similar capacity in Delhi.