R-Power plans 8,000-Mw plant in Gujarat

Reliance Power (R-Power), a Reliance-Anil Dhirubhai Ambani Group (ADAG) company, is close to finalising a gas-based power plant in Gujarat with a capacity of 7,000 Mw to 8,000 Mw. This would entail an investment of around Rs 30,000 crore, based on investment levels that are normally required for power projects at present.

The company has shortlisted Bharuch and Dahej as possible locations for the proposed plant, according to people close to the deal. A Reliance-ADAG spokesperson, however, declined to comment on the issue. The move, of course, does not mean the group is giving up on its proposed 7,800-Mw power project at Dadri in Uttar Pradesh, which is facing problems related to land acquisition. In fact, R-Power had been looking for alternative locations earlier, in case the Dadri plant did not materialise.

It has had talks with Maharashtra, Gujarat and Andhra Pradesh governments on the issue. The east-west gas pipeline – which is being built by the Mukesh Ambani-led Reliance Industries (RIL) from Kakinada to the west coast – will run through these three states.

After a prolonged legal battle over the pricing of gas supplies, the Supreme Court had recently asked RIL and ADAG company Reliance Natural Resources (RNRL) to renegotiate their gas supply agreement in eight weeks' time. Now, with the finalisation of the mutually reworked supply agreement with RIL, R-Power plans to expedite work on its proposed power plants. Interestingly, ADAG said in a statement on Friday that the R-Power board would meet on July 4 to consider the merging of RNRL with itself.

RIL has already said it would supply gas to the ADAG company's plants as and when they are ready. This, of course, is subject to the allocation made by the government. R-Power is also building a 1,400-Mw, gas-powered plant in Sambalpur, Orissa, where there is scope to expand capacity because additional land is available.

The process of getting approvals for the expansion is in an advanced stage. Besides, the company is also setting up another 4,000-Mw, gas-based power plant in Shahpur, Maharashtra. It has received bids for equipment supply and construction.  Environmental clearances and land acquisition are also being worked out.

The company is also acquiring 433 Mw of power generation assets from group company, Reliance Infrastructure. The transfer of these assets has been valued at Rs 1,095 crore. This generation capacity comprises 220 Mw at Samalkot in Andhra Pradesh (where R-Power is already getting supply from the D6 field), 165 Mw in Kerala and 48 Mw in Goa.  Overall, R-Power is implementing power projects with an aggregate capacity in excess of 35,000 Mw.