The Anil Ambani-owned Reliance Energy Ltd's engineering, procurement and construction arm is all set to build a 1,200 MW thermal power plant near Barwala in Hisar district of Haryana. Prime Minister Manmohan Singh laid the foundation stone for the project on Saturday.
The largest of the 3,000 MW projects of the Haryana government in the pipeline, the power plant would be set up by Haryana Power Generation Corporation Ltd. (HPGCL) within the next four years, according to a company statement.
The Rs 38-billion project gets the first mega project status in northern India under the government's mega project policy.
Reliance Energy, which emerged as the lowest bidder, has been given the task to build the power plant on turnkey basis. The project consists of two units of 600 MW each and would be commissioned within 34 and 36 months.
The plant, once ready, would be able to produce 28.8 million units of power catering to the needs of hundreds of millions of people in northern India.
The project is proposed to be financed with debt and equity ratio of 80:20 with the Haryana state government contributing 20 per cent of the total cost.