REL's Dadri gas project to start by 2011

The agreement clearly points that promoters will start ops within 7 yrs of signature of the SSA, reports Masoodul Hasan.

india Updated: Nov 22, 2006 21:22 IST

The much-publicised Dadri gas-based power project of Reliance Energy Limited (REL) may not be able to commence commercial operation before 2011.

While the Chief Minister Mulayam Singh Yadav has repeatedly assailed the Congress-led UPA for delaying the project, the agreement between the state government and REL had clearly pointed that the promoters would try to start commercial operation within seven years of signature of the State Support Agreement (SSA), which was signed between the two parties on June 16, 2004.

The state government replying to the question of Prof Raj Kumar Tyagi in Vidhan Parishad on Wednesday said there was a provision of seven years from the date of signature of MoU for production.

The government said that work on the site had started and time-frame for the power production had not yet expired, hence there was no question of taking any action against the company.

The government said under the power policy, the government had paid 60 per cent thecost of 2,500 acres of land and REL had paid 40 per cent of the land cost.

Since the construction at the site has started nearly two years late, the possibility of further delay in production cannot be ruled out. The ruling Samajwadi Party had accused the centre that the project was being delayed, as there was inordinate delay in fixing purchase price of gas.

The government inexplicably has refused to make the MoU public. The UPCC spokesman Akhilesh Pratap Singh had recently moved an application under the Right To Information to provide a copy of the MoU but his request was rejected on grounds that the government had assured REL not to make it public.

Email Masoodul Hasan: mhasan@hindustantimes

First Published: Nov 22, 2006 21:22 IST