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RIL joins the power play

The govt has given the final nod to RIL to set up two captive power plants in Maharashtra to meet the requiremnet of SEZs, malls and other commercial setups.

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The state government has given the final nod to Reliance Industries Limited (RIL) to set up two captive power plants in Maharashtra - each of 1100 MW capacity — to meet the requiremnet of special economic zones, malls and other commercial setups. RIL has offered to supply domestic gas across the state.

It has also promised the government to supply gas in order to make the 850 MW Uran power plant fully operational. In return, the state has assured RIL support to expedite the completion of the Kakinada (Andhra Pradesh)-Uran power pipe line passing through Karnataka and Maharashtra en route to Gujarat.

The high level negotiations to address the power crisis took place between RIL Chairman Mukesh Ambani, Union Agriculture Minister Sharad Pawar, Chief Minister Vilasrao Deshmukh and State Energy Minister Dilip Walse-Patil.

Deshmukh said, “The RIL gas supply will go a long way is overriding the power crisis, especially in the backward regions of Marathwada.” The gas pipe line is likely to be completed by June 2008. The biggest hurdle in its way would be the protest from villagers unwilling to give their land for the project. At Tuesday’s meeting, the government decided to set up a secretary level committee to expedite the project.

Indications were that Pawar was playing a key role to tap major industrial houses to help state weather the acute power crisis. The state government also feared that if the crisis was not solved, it would hamper new industrial and foreign direct investments in Maharashtra.

A senior officer said, “RIL has been told to divert its surplus power generated to state owned projects to tide the power crisis.” Industry sources were left wondering whether the RIL power projects could lead to problems related to non-competitive clause entered between the brothers (Anil and Mukesh) during the dispute. However, the official explanation was, “Top political leaders will be negotiating to avert any clash between the two Reliance groups.”

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