Tata Power Co Ltd, India’s largest private power producer, is looking at setting up a 1,000-megawatt power project in Dholpur, Rajasthan. The thermal power project is estimated to cost over Rs 3,000 crores, a senior official said on Monday. "Tata Power is currently evaluating a proposal to set up a thermal power project in Dholpur," said Mr Anil Sardana, chief executive officer, North Delhi Power Ltd – the Tata group’s distribution arm in the capital.

Mr Sardana said that Tata Power had started work on drawing up a feasibility report following an invitation by the Rajasthan government to take over the project. TCE Consulting Engineers — a wholly-owned subsidiary of Tata Sons Ltd — has been mandated by the TPL to draw up a feasibility report. The project had earlier been awarded to the R. P. Goenka group, which had planned to set up a 702-mw liquid fuel plant costing over Rs 200 crores.

After failing to execute the project, the RPG group had reportedly returned the land allotted by the government. Tata Power’s project is likely to be gas-based and would draw fuel from the Hazira-Bijapur-Jagdishpur pipeline. Last year, the company had proposed a 1,000 MW power station in Delhi. However, it was forced to scout for opportunities outside the capital following tardy progress on the allocation of land by the state government. Tata Power is already exploring opportunities for a similar project in Uttar Pradesh, off the Delhi border.

However, the company is unlikely to set up two gas projects — one in Delhi and the other off the Delhi border in Uttar Pradesh — and is expected to narrow down its choice to one. The greenfield project would meet a part of NDPL’s power requirement for its Delhi consumers. The Tata group currently holds a 51 per cent equity stake in NDPL — which supplies electricity to the northern and north-western parts of the capital-state. The Delhi government holds the remaining stake. Tata Power shares ended at Rs 290.65 on the National Stock Exchange, up 1.36 per cent over Friday.