Tata Power signs MoU with Govt of Orissa for 1000mw project

RELATED NEWS Tata Power among major loser Tata Group charts out mega expansion plans Tata Power eyes Aussie, Indonesia coal mines Tata Power Q1 PAT up at Rs 121.85 crores Tata Power Q1 net up at Rs 121.9cr ALSO READ See latest News about Tata Power See previous management interviews See what other Experts & Brokerages are saying about Tata Power Tata Power BSE | NSE 10/02/12 Are Mutual Funds betting on Tata Power?

In its maiden foray into the State, The Tata Power Company Limited today announced the signing of a MoU with the Government of Orissa for the development of a 1000 MW coal-based power project with captive coal mining facilities. The project is estimated to entail an investment of around Rs. 4,300 crores and will be set up at Naraj Marthapur in Cuttack. Another 1000 MW is expected to come up as the second phase of project development and will take the total capacity to 2000 MW with an estimated investment of Rs. 9000 crores.

 

The Agreement signifies the intent of the Government of Orissa for rapid industrialization and prosperity of the State and its people. Towards this end, the Government of Orissa has sought to extend comprehensive assistance to the power project through active participation. The government will assist Tata Power for single window clearances and approvals. The government will also recommend to the Central Government for allocation of captive coal blocks or will assist in necessary coal linkages for the project. A Government of Orissa nominated agency will purchase a portion of the power generated, for which a PPA is to be subsequently signed. Being a Mega Power Project, Tata Power will also sell power to distribution entities from the other States. Tata Power will also serve the power requirements of Tata Steel's proposed steel plant in the State as well as certain large industrial units in Orissa.

 

Mr. Adi  Engineer, Director, The Tata Power Company Ltd., said, "The MoU signifies a beginning of a new relationship between Tata Power and the Government of Orissa towards bridging the power requirements of the state and the country. With this MoU, Tata Power has taken another step towards its growth plans and increasing its national footprint. The agreement also reiterates the commitment of the Tata Group towards the state of Orissa."

 

The MoU with the Government of Orissa follows a similar successful MoU signed with the Government of Maharashtra, towards which the Company has invited bids for over 2,000 MW coastal power plants.

 

Sourced From: Vaishnavi Corporate Communications