Reliance Power

Reliance Power has
bagged its third 4,000-MW
Ultra Mega Power Project at
Tilaiya in Jharkhand

– January 2009


Current Openings

Tilaiya Ultra Mega Power Project (UMPP) is an upcoming 3,960 MW power project at Hazaribagh district, Jharkhand. It the third UMPP in Reliance Power’s power portfolio. We are the only company to have the unique distinction of having secured three of the four UMPPs declared by the Government of India. The project is being developed by Jharkhand Integrated Power Limited which is a wholly owned subsidiary of the company.

In order to meet the growing gap between demand and supply of power the government has come up with the concept of UMPPs. These large scale projects are aimed at building large capacities at low costs which can sell power at low tariffs to consumers. The projects are awarded to developers on tariff-based competitive bidding on a Build-Own-Operate basis. Power Finance Corporation (PFC) the financial institution under the Ministry of Power, Government of India is the nodal agency for getting the basic infrastructure like land, water supply, environment clearances, etc. for UMPPs.

Tilaiya UMPP is a pit-head power project and has been allocated two captive coal mine blocks – Kerandari ‘B’ and ‘C’ – having reserves of almost 1.3 billion. The mines are located at a distance of 115 kms from the project site. The mine plans for development of these mines have been prepared and are under approval by the Government of India. The mine plan envisages production of almost 40 miliion tones of coal per annum making these mines one of the largest in India.

Tiliaya UMPP along with the coal mine would on completion become the largest integrated coal-cum-power plant in the country. The scale of the project can be better appreciated from the fact the project and coal mine together involve almost 13,500 acres of land of which almost 11,00 acres would be coal mines.

The project was awarded for development to the company through a competitive bidding process and transferred to the company in August 2009. Given the scale of the project and the clearances for land, environment, water, forest etc required to be undertaken by the Government, some of these approvals are being obtained after the project transfer. The land required for the construction of the power plant has already been acquired. The environment clearance for the power plant has also been obtained. The water required for the power plant has been allocated by the Government from the Tilaiya reservoir which is located at a distance of 4 kms from the power plant.

The power generated form Tilaiya Power Plant will be supplied to 18 procurers from 10 states of northern and eastern India at a levelized tariff of Rs. 1,77/kWh (Kilo Watt Hour). The power project is expected to start generating power from the year 2015. The low tariff for the project is being made possible because of the low cost of generation which is being targeted on the basis economies on procurement, low financing costs through better financial planning, low fuel cost with highly productive and efficient operations of the coal mines. Further, the project will be employing the advanced ‘super-critical’ technology for its power plant. This results in higher operating efficiencies and also reduces the emissions thereby making it a green technology.

The power and coal mine put together are estimated to cost around Rs 24,000 cr (US$ 5 billion). The financial closure process for the project has been initiated and it is expected that the project would be financed at a debt to equity ratio of 75:25.

Key Features

  • The third ultra mega power project of the company
  • The largest pit-head based integrated power and coal project
  • The lowest cost of generation

  • Impact of Project on Environment

    On the environment front, we will be undertaking afforestation and plan to grow 10 million trees around our power plants.

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  • Project’s Social Welfare Plan

    In line with our Corporate Philosophy, we are in the process of putting in place a CSR and Rehabilitation

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