Reliance Energy Ltd [Get Quote] has proposed to set up a 12,000 mw thermal power plant at a cost of Rs 48,000 crore (Rs 480 billion) at Hirma in the Jharsuguda district of Orissa.

Reliance Energy's Executive Vice-Chairman Satish Seth today made a presentation before Chief Minister Naveen Patnaik at the state secretariat here in this regard.

Reliance Energy has proposed to put up the power plant in phases. In the first phase, the company intends to set up six units of 660 mw each at a cost of approximately Rs 18,000 crore (Rs 180 billion).

Sources close to the development said the presentation was a revival of the company's old proposal to set up a 4000 Mw power plant at Hirma.

The earlier proposal was submitted to the state government in the mid-1990s. The company had then tied up with Hong Kong-based Consolidated Electric Power Asia Ltd (CEPA) to set up the venture.

However, the project did not move forward owing to delays in the finalisation of power purchase agreements with different states. Later, CEPA withdrew from the project, further hindering its progress.

In the new proposal, the company has scaled up the proposed capacity three fold to 12,000 mw.

When asked about the possibility of inducting a partner in the venture, given its massive capacity, Seth said, "As of now we are alone in this project."

He said owing to the changed business scenario, the New Electricity Policy and the upgradation of the power transmission system, it would be far easier now to evacuate and sell power generated at the station.

Reliance Energy is present in Orissa through its three electricity distribution firms -- Nesco, Wesco and South -- following its acquisition of BSES. Reliance Energy's entry into power generation in the state will bring synergy to its operations in Orissa.