The proposed ultra mega power projects (UMPP) will produce more power than that has been envisaged. Close on the heels of empowered group of ministers' deciding to allow capacity expansion for the UMPPs, Reliance Energy on Wednesday took an 'in principal decision' to expand the capacity of its proposed power project in Sasan.
Reliance Power, a subsidiary of Anil Ambani-controlled Reliance Energy, has bagged the project to set up a 4000 MM UMPP at Sasan in Madhya Pradesh. Recently, the EGoM has approved changes in policy guidelines for UMPPs including allowing capacity expansion beyond 4,000 MW.
Delhi, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Uttaranchal will be benefited from electricity produced from the Sasan. "From Sasan, we can serve the entire northern region. So, the decision was to set up additional units there instead of going for further investments at some other places," said a source.
Dedicated coal blocks have already been allocated for the Sasan project. The company has received two geological study reports and is waiting for the third. "We are studying coal reserves from the allotted mines. We will soon finalise up to what extent the capacity is to be increased," sources said.
The EGoM decision is also allowing flexibility in configuration. "At the stage of bidding, it has been finalised that there will be 5 turbines, each will produce 800 MW each and it was limited. Now there is a flexibility in the configuration that we can install more units," sources said.
According to the earlier estimates, the company will be investing Rs 16,000 crore for the project considering Rs 4 to set up 1 MW of electricity.
Currently, Reliance Energy is producing 941 MW from its five existing plants. The group chairman Anil Ambani had recently told REL shareholders that the company is planning a capacity addition of 20000 MW over the next five years with an investment of over Rs 80,000 crore.