GMR Energy, the holding company for the GMR Group's power business, has signed a memorandum of understanding with the Chhattisgarh government to build, operate and maintain a 1,000-megawatt (MW) coal-based thermal power plant in the state.
GMR Energy is currently looking for a suitable project site, evaluating the relative proximity of alternative sites to coal mines and transmission corridors. Detailed feasibility studies are likely to begin in a fortnight. The Chhattisgarh government shall provide all the assistance it can, extending all the incentives given to industrial projects in the state.
As per the MoU, Chhattisgarh is entitled to use 5 per cent of the net energy annually at variable cost as determined by the appropriate regulatory commission in case the company gets a coal linkage. If it is allotted a coal block, Chhatisgarh will get 7.5 per cent.
Chhattisgarh will have the right to purchase up to 30 per cent of power from the project for 20 years through its nominated agency.
With this 1,000-MW project, the GMR Group now has power assets of about 830 MW which are already commissioned and power projects with more than 2440 MW capacity, under various stages development.