There are five thermal power plants in the region totalling over 11,000 mw. Another five plants are in the pipeline and among them is the 4,000 mw ultra mega power plant being built by Reliance Power Limited -- an Anil Dhirubhai Ambani group company -- that would be India's biggest thermal power plant.
An abundance of coal and water -- the two key inputs for thermal power plants makes it a natural choice of location for power producers. While coal fields are spread over more than 2,202 square km, the Rihand and Sone rivers ensure a continuous supply of water.
The country's largest power generator, government-controlled NTPC, has three thermal power plants that get water from the Rihand reservoir.
Besides these, there is a 900 MW captive plant of Hindalco at Renusagar and 3,180 Mw plants at Anpara and Obra.
Plants in the pipeline include Essar (2,000 Mw), Lanco (1,000 Mw), the Jaypee Group (1,000 Mw) and the US-based ISN (2,000 Mw). According to a senior official of the Jaypee group, the coal-rich land is ideal for setting up high-capacity coal pit head projects. Jaypee's 1,000 Mw thermal plant is likely to be commissioned by 2011-12.
Despite being dotted with power plants and coal mines, the region is covered with greenery. However, the power-rich area is largely inhabited by people with low income.
Industry experts say power projects in the region will aid development. "There is a downstream effect of these plants that will help the local populace gain access to employment, houses and other benefits," says a member of the Indian Independent Power Producers' Association.
The question is whether so many impending plants will create competition and stress for the limited coal reserves and water. A Delhi-based power consultant said this was a possibility in the long term, but for the time being there was no such threat because these plants were being set up after doing detailed studies.
Coal fields in this area come under Northern Coalfields Limited -- a subsidiary of Coal India Limited. The coal mines in the area are Dhudhichua, Jayant, Nighai. In 2006-07, coal production in this region was 52 million tonnes and the target set for the current year is 58 million tonnes.
The success of "Urjanchal" is encouraging plans to create similar power zones in Orissa, Chhattisgarh and Jharkhand, areas that are rich in coal reserves and water bodies.