MEGL, belonging to Anil Dhirubhai Ambani Enterprises group, had signed an MoU with Maharashtra government in April 2005 to set up the combined cycle mega plant at Shahapur, REL informed the Bombay Stock Exchange.
The company will invite bids for 1,400 MW, which is the phase - I of the proposed 4,000 MW power plant, it said.
It would invite offers for engineering, procurement and construction contracts through international competitive bidding process.
The final 4,000 MW capacity of the project would represent more than 25 per cent of the existing total installed capacity in the Maharashtra, it added.
This capacity is expected to cater the growing power needs of the Mumbai consumers, thereby bridging the vast demand-supply gap in the western region states.