New Delhi: Tata Power would soon hold discussions with Uttar Pradesh government about setting up a 1000 mw thermal power project estimated to cost around Rs 4,000 crore. “We (Tata Power) have been invited by Uttar Pradesh government recently for a dialogue over the proposed mega power project,” Anil Sardana, chief executive, North Delhi Power (NDPL), Tata’s power distribution arm, said on Sunday. 

He said UP energy secretary had formally invited the company for a discussion in which land allotment and other matters would figure. 

The move to hold talks with UP government assumes significance as Tata Power has become the second major power producer to look at the state following a decision by Reliance Energy to establish a similar project at Dadri last month. 

Mr Sardana said the group would seek around 100 acres of land for the greenfield venture for which it had identified several alternative sites. He did not say which locations have been identified. 

The project, likely to be set up in phases, would supply a significant chunk of energy to Delhi where the company acquired a distribution circle in 2002 following privatisation of Delhi Vidyut Board. 

The company had earlier planned to set up the project in Delhi, but was frustrated by the Delhi government’s tardy decision making. 

“It is strange for Delhi to show shyness in promoting private power generation, particularly when it had already privatised distribution business,” Mr Sardana said. 

He said locating the plant away from Delhi would create problems of islanding in times of crisis and therefore Tata group was keen on keeping the station within Delhi to allow it protection against grid problems. 

The group had over a year back approached Delhi government seeking land for a 1000 mw project to be set up in the Capital but has yet to hear from the latter.

Following the enactment of Electricity Act 2003, private power producers no longer require licences for establishing generation capacity. 

Currently Tata Power has an established capacity of over 2200 mw. It is also in the process of establishing a 330 mw Srinagar hydel power station in Uttaranchal after buying out Duncans and Synergics group stakes. 

Besides it also runs power distribution circles in Mumbai and has shown interest in picking up other distribution circles.