RPL may relocate its Dadri Project

Anil Dhirubhai Ambani group may relocate its ambitious gas based mega power project of Dadri to industrial friendly states

After the Allahabad High Court’s decision on Dadri project, the Reliance Power management has started to explore possibilities of shifting the project outside Uttar Pradesh. After Nano this would be second big project relocating under political protest.

The on the record version of RPL remains that they are hopeful to proceed with the Rs 30,000 Cr Dadri project, but the round of meetings have begun in last three days to weigh the effects of the judgment. The company has options to challenge the verdict in the Supreme Court or to wait for one month and watch the state machinery to act in accordance with the high court judgment and complete the procedure.

Anil Dhirubhai Ambani Group maintains in media to build a world-class power project in Uttar Pradeh and serve the customers in the northern part of the country. However, the talks with Maharashtra and Andhra Pradesh Government sources have been restored. In both these states the company already has plans and its presence.

Reliance Power is setting up a 4,000 MW ultra mega power project (UMPP) at Krishnapatnam, , in Andhra Pradesh. The project is based on imported coal. RPL had won this project at a very competitive bidding of Rs 2.33 per unit. This was very low compared to earlier bids of Sterlite at Rs 4.18 per unit. The company and the state government both can expand this deal to double the size on alternate fuel of KG basin gas.

Through a subsidiary company RPL is implementing 4000 MW Power Project at Shahapur, Alibag Raigad District. This has both gas and coal based options. The project is planned to go live by 2011. For 2x600 MW coal-fired project employing supercritical PCC technology is chosen whereas 1,400 x2 MW gas-fired project is on CCGT technology.

The third option is the state where elder brother Mukesh has bigger presence. In Gujarat RPL is setting up power plants near Bharuch. Two sites near Baruch have been identified. Gujarat administration with its investor friendly approach may allow expansion to 7,000 MW capacity. Gujarat is already having many mega power projects in line from various players including Adani Torrent and others.

All the options planned are keeping in mind the KG gas availability from RIL. The gas transportation to these locations would be easy. The ADA group maintains that it has right to transport its share of KG basin gas to any location if Dadri project fails.

RPL was negotiating EPC contract for Dadri and Shahpur. Relocating the project to other state will not be difficult as the project was at a very preliminary stage of land acquisition. The loss of UP would be the gain of industrialized states.

This was published in Ahmedabad Mirror
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