Two thermal power projects worth Rs 18,000 crore approved by the Uttar Pradesh government

12 Jul 2023 , 11:30 AM

In an effort to give state residents cheaper electricity, the Uttar Pradesh government on Tuesday approved the construction of two ‘Obra D’ thermal power projects in Sonbhadra’s Obra, with a combined capacity of 800 MW. According to a statement released here, the Cabinet meeting chaired by Chief Minister Yogi Adityanath approved the ‘Obra D’ thermal power plants.

In a 50:50 joint venture with the federal government-owned power plant NTPC, the government will carry out the projects. According to the statement, financial institutions will arrange for the remaining 70% of the funds while 30% of equity will be provided for project completion.

The ‘Obra D’ thermal power plants will be the state’s first ultra-supercritical unit. The plant will brag of cutting-edge technology, high efficiency, and low coal usage, which will lower the cost of power generation and lower energy rates in UP, according to the statement.

It stated that the first unit would be ready in around 50 months.

The press release quoted Urban Development and Energy Minister A K Sharma as saying, ‘We had signed an agreement with NTPC to put up a thermal plant at Obra during the Global Investors Summit. The Council of Ministers has today authorized the project. About 500 acres of land will be used to build this facility, and plans will also be made for additional acreage if it turns out to be necessary.

The current thermal power generation capacity in UP is 7,000 MW, according to the energy minister, and the two facilities will contribute close to 25% of that capacity.

‘We hope that this plant becomes into a national energy hub, not only for the state. The utilization of cutting-edge technologies will result in lower coal usage at the new plants, and the nearby NCL coal mines will result in much lower coal transportation costs, he added.

We currently pay Rs. 5.50 per unit for power, but thanks to this plant, we will only have to pay Rs. 4.79. That is, we will be allowed to charge consumers Re 1 for each unit of electricity, he continued.

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