The RP Goenka group, on 15 September 2005, signed an MoU with the Jharkhand government to set up a 1,000 MW coal-based power plant in the state.

The project, likely to cost around Rs.5,000 crore, will be financed through equity, internal accruals and debt. CESC, an RPG group company, will implement the project on its own or through a special purpose vehicle formed for the purpose.

The Jharkhand government has offered three sites -- Godda, Latehar and Chandil -- to locate the project. Of the three sites, only Godda has a coal pithead (of the Jitpur coal mine) in its vicinity. The RPG Group will carry out the pre-feasibility study over the next six months to decide on the exact location.

The power plant will come up in two phases. In Phase I, two units of 250 MW each would be set up followed by Phase II where one unit of 500 MW would be developed. The project is targeted for completion within three years.

This the first project that CESC (formerly Calcutta Electricity Supply Co) would be implementing outside its home state, West Bengal.