Maharashtra Industrial Development Corporation has selected Reliance Energy as the developer for the proposed group captive power plants in the state.

MIDC has proposed to set up two 100 MW group captive power plants in two of its industrial areas -- Thane-Belapur and Butibori-Hingna. The proposed plants will meet the energy requirements of industrial units in these areas, which typically suffer from erratic power supplies.

Both the projects, together costing around Rs.700 crore, will be operational in the second half of 2006.

The plants would be run with active participation of the consumers and a special purpose vehicle would be floated for this. Consumers would hold 26 per cent equity while the balance would be held by Reliance Energy, which would be free to raise additional capital from the market.

In April 2005, MIDC had shortlisted Reliance Energy and Tata Power to set up these plants. Earlier, Wartsila and L&T were also in the fray.

Also See:

Reliance, Tatas shortlisted for captive power plants (23-Apr-05)