U.P. cabinet nod to 1600 MW Obra D power project in Sonbhadra

The project, with each unit having a generation capacity of 800 MW, will be implemented with an investment of ₹17,927 crore

In a major move to add to Uttar Pradesh’s power generation capacity and provide cheaper electricity to people, the state cabinet on Tuesday approved a proposal for a joint venture between U.P. government and the National Thermal Power Corporation (NTPC) to set up Obra D project having two ultra super critical units with a total generation capacity of 1600 megawatt (MW) at Obra thermal power generation complex in Sonbhadra.

Uttar Pradesh has thermal power generation capacity of nearly 7000 MW and a large chunk of this capacity, about one fourth, would be generated from the proposed Obra-D plant. (For Representation)

The project, with each unit having a generation capacity of 800 MW, will be implemented with an investment of ₹17,927 crore. Both the state government and the NTPC will invest in the project on 50:50 basis and have 30 percent equity while the remaining 70 percent will come from loan. The state government’s equity will be around ₹2,697 crore.

Chief minister Yogi Adityanath presided over the meeting of the state cabinet that gave go ahead to the Obra-D project to come at 500-acre land available there. “This will be first such plant of its kind with advanced technology, efficiency and has lesser consumption of coal,” said state energy minister AK Sharma while briefing media persons about the state government’s decision.

Sharma said as the coal for the plant would be available in the nearby area, the power would be available from the plant for ₹4.89 per unit against ₹5.50 per unit available now. He said if required, more land would be made available for the project.

Sharma said Uttar Pradesh has thermal power generation capacity of nearly 7000 MW and a large chunk of this capacity, about one fourth, would be generated from the proposed Obra-D plant. He said power consumption in the state has been going up consistently.

The minister said the power supply demand touched unprecedented peak of 27,000 MW in summer. He said the state government and the NTPC had signed a memorandum of understanding (MoU) in this regard at the Global Investors Summit organised in Lucknow from February 10 to 12, 2023.

Sharma said this was an ambitious MoU. He said the state government proposed to Prime Minister Narendra Modi who was on a visit to Varanasi during that period to develop Obra, Sonbhadra, as the energy hub for the country. He said the PM gave necessary directives to the union minister for energy, the secretary, energy, and the NTPC in this regard.

He said the NTPC has now taken a step forward in this regard. Sharma said the first unit of the Obra-D plant would be ready in 50 months while the second unit will be functional in 56 months, six months after the first unit.