UP govt approves two thermal power projects a 50:50 partnership with NTPC

New Delhi/ Lucknow: The Uttar Pradesh government on Tuesday approved two 'Obra D' thermal power projects of 800 MW each to be built at the cost of Rs 18,000 crore in Sonbhadra's Obra, a move aimed at providing cheaper electricity to the people of the state.

The 'Obra D' thermal power plants were approved in the Cabinet meeting presided by Chief Minister Yogi Adityanath, an official statement issued here said.

The projects will be executed by the government with a 50:50 partnership with central government-owned power generator NTPC. While 30 percent equity will be given for the implementation of the projects, the rest 70 percent of the amount will be arranged from financial institutions, the statement said.

MoU signed during UP Global Investors' Meet

The 'Obra D' thermal power plants will be the first ever ultra super critical unit in the state. The plant will boast of state-of-the-art technology and high efficiency, with low consumption of coal, bringing down the cost of power generation, which will lead to slashing of electricity rates in UP, it said.

The first unit will be ready in about 50 months, it said.

Quoting Urban Development and Energy Minister AK Sharma, the release said, "During the Global Investors Summit, we had signed an agreement with NTPC to set up a thermal plant at Obra. Today, the project has been approved by the Council of Ministers. This plant will be built on about 500 acres of land and if further land is needed, arrangements will be made for that too."

The energy minister also said that UP's current capacity in terms of thermal power generation stands at 7,000 MW and the two plants will contribute almost 25 percent of the existing capacity.

"We hope that this plant becomes an energy hub not only of the state, but of the entire country. The consumption of coal will be lower at the new plants because of use of advanced technologies while transportation cost of the coal will also drop significantly due to the close location of NCL coal mines," he said.

"At present, we buy electricity at Rs 5.50 per unit, while from this plant we will be able to buy electricity at Rs.4.79 per unit. That is, we will be able to provide cheap electricity to consumers at Re 1 per unit," he added.

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