Ultra Critical Mega Power Projects Uncertain Futures; Reliance Power Scraps 4,000 MW Project

Reliance Power scraps 4,000 MW project

Mumbai: Reliance Power has decided to scrap another 4,000 MW gas-based power plant, this time in Raigarh, Maharashtra. After this, almost half of its power projects totalling to 16,000 MW will be run on conventional fuel like coal and natural gas may not see light of the day. The company has written to the Raigarh district administration and cited land acquisition issues as reasons for withdrawal from the project, making it the third project facing bleak future.

Last month, Anil Ambani-led firm stopped work on the 4,000 MW Krishnapatnam Ultra Mega Power Project (UMPP), citing sharp increase in the cost of imported coal. The company has sought government intervention to make the project viable. Last year, the firm had to scrap its biggest power project of 8,000 MW in Dadri due to non availability of gas and land acquisition issues. This dream project was capable of lighting mega cities like Delhi and Mumbai simultaneously.

However, the firm is going ahead with commissioning of its 2,400 MW gas-based power plant in Samalkot, which is yet to get gas supply linkage due to falling production at KG basin of Reliance Industries. Reliance Power plans to add 5,000 MW of power capacity by 2012-end that may include Samalkot, Sasan phase I Rosa phase II and Butibori projects.

When asked for comments, a spokesperson of Reliance Power said, “We are committed to the state of Maharashtra and are investing Rs 5,000 crore in power sector. Reliance Power is developing 600 MW project at Butibori near Nagpur. Butibori project will start power generation by March 2012. Company is setting up 200 MW wind project at Vaspet.”

Source: TOI