The Delhi Cabinet gave its approval to a gas-based power plant Pragati Power Plant (PPP-II) at Bamnauli on Monday.
With the commissioning of the plant, with a capacity of 750 mw, half of Delhi's electricity requirements will be met by the city's own power generation plants.
Talking to reporters after the cabinet meeting, Delhi chief minister Sheila Dikshit said the plant would be commissioned in 28 months from the date of award of contract.
"We have already obtained necessary clearances from the Union Ministry of Environment and Forests, the Airport Authority and the Ministry of Defence. We have also acquired 14.5 hectare land needed for the plant, for Rs.109 crore. There will be a requirement of 3.5 million metric standard cubic meters (MMSCMD) gas per day, which will be provided by the Gas Authority of India from Reliance India Limited's (RIL) offshore blocks in the Krishna-Godavari Basin," said a senior power department official.
In the past three years, the Delhi government has initiated three major power projects - PPP-III at Bawana (1500 MW), Aravalli Power Project at Jhajjar (750 MW) and NTPC Project at Dadri (980 MW).