Tatas in power deal with Orissa
Daily News & Analysis — September 27, 2006

Tata Power Company on Tuesday signed an agreement with the Orissa government to set up a 1000 MW coal-based power project in the state entailing an investment of Rs 4,300 crore. In the second phase of the project located at Naraj Marthapur near Cuttack, another 1000 MW will be added, taking the aggregated investment to Rs 9,000 crore. The state government will assist Tata Power for single-window clearances and approvals and will recommend to the Centre for allocation of a captive coal block or will assist the power utility to establish coal linkages for the project.

A state government-nominated agency will be assigned to purchase the power generated from the plant and a power purchase agreement between the agency and Tata Power is to be signed later. The Tata Power plant will also meet the requirement of Tata Steel that is putting up a steel plant in Orissa. Adi Engineer, director, Tata Power, said: "The memorandum of understanding signifies the beginning of a new relation between Tata Power and the state government towards bridging the power requirement of the state and the country. With this MoU, Tata Power has taken another step towards its growth plans and increasing national footprint."

The MoU with the Orissa government is similar to the successful MoU signed by the company with the Maharasthra government. Earlier in July, Anil Dhirubhai Ambani Group (ADAG) had announced a 12,000 MW project at Hirma in Orissa, involving an investment of Rs 60,000 crore. But the MoU for this is to be signed after completion of a techno economic feasibility report. In the first phase ADAG proposed to put up a 4000 MW plant at an investment of Rs 18,000 crore.