Anil Ambani, Reliance Industries Ltd Vice Chairman, announced in New Delhi on Tuesday that the company will set up a 3,500 MW, gas-based mega power project in Uttar Pradesh at an investment of least Rs 10,000 crore (Rs 100 billion).
He made the announcement following the meeting of the Uttar Pradesh Development Council which was also attended by other leading industrialists like Adi Godrej, K V Kamath and Subrato Roy having industrial stake in the state.
The project, to be developed in phases, will also be the largest power generating plant in the country at a single location.
Uttar Pradesh Chief Minister, Mulayam Singh Yadav, addressing a media conference at the conclusion of the UP Development Council meeting in New Delhi stated, "Today's announcement by Reliance, India's largest industrial enterprise, of this project and the substantial investment in Uttar Pradesh is a strong vote of confidence in the state."
Anil Ambani said that the project would be the largest gas-based power generating facility globally; and it will be developed in phases and would entail an investment outlay of more than Rs 10,000 crore.
He said it is the single largest investment ever across any sector in Uttar Pradesh; and will benefit millions of consumers in northern India.
He emphasised that the project would be based on domestic natural gas which is an environment friendly fuel producing clean-green power.
The natural gas would be sourced from Reliance group's Dhirubhai gas fields in the Krishna Godavari basin off the coast of Andhra Pradesh.
Ambani said the project would be a strategic national asset as envisioned by prime minister Atal Bihari Vajpayee in his 'Power for All by 2012.'
The sub-groups of the UP Development Council have been entrusted with preparing a vision, strategy and policy framework.
Leading personalities in the industrial field have been given the responsibility of the state's development.
For entertainment, there is Hindi film star Amitabh Bachchan, housing and urban development - Subrato Roy ( Sahara Group ), agro and food processing M S Banga and Adi Godrej, IT and communications -- Nandan Nilakeni, education -- Ramdas Pai, healthcare -- Pratap Reddy, industrial infrastructure K V Kamath and natural gas and energy -- Anil Ambani.
Sahara Group Chairman Roy contended that his firm would be constructing housing for the lower middle and middle classes with a project worth Rs 20,000 crore (Rs 200 billion) in the next three years.
He pointed out that 10 million tourists visited UP every year and tourist infrastructure was urgently needed in the state for their comfortable stay.
Mulayam Singh Yadav thanked Ambani for taking up the gas-based power project in the state with such a huge investment.
He expressed happiness that the sub-groups had lost no time in taking up their responsibilities and there were concrete indications that the development works had already started in UP.
Earlier, reports had stated that the Reliance Group was scouting for a location in the state following the announcement of a new power policy.
Arun Mishra, Chairman of UP Power Corporation had said in December 2003 that the "Reliance Group has expressed interest in setting up a power project in Uttar Pradesh with a capacity of around 3,000 MW."
Mishra said the company was looking at few sites and had indicated a land requirement of 2,500 acres for the proposed venture.
The Reliance Group, which is channelising all its power ventures through BSES to be rechristened Reliance Energy, has already announced plans to set up a 1,000 MW power project in and around New Delhi and had been scouting for land in Uttar Pradesh and Haryana, besides Delhi.
The gas-based project would supply power to not just Uttar Pradesh, but also to Delhi and other adjoining areas where the group may pick up distribution circles.