The Anil Ambani group has fast-tracked its plans to set up the Dadri power project in Uttar Pradesh. Reliance Power (R-Power) has initiated negotiations with General Electric, Bharat Heavy Electricals [Get Quote] (Bhel) and a few other gas turbine makers for the supply of turbines, boilers and generators for the project.

The 7,480 MW project will be the largest gas-fired power project at a single location in the world and will cost about Rs 20,000-25,000 crore (Rs 200-250 billion).

"In fact, GE has assured the company of supplying turbines in 9-11 months from the date of the order since worldwide demand for gas turbines is less," sources familiar with the development said.

The move comes in the backdrop of the government assuring gas supply to the Dadri project.

The matter is currently under litigation in the Bombay HC and a decision is expected soon.

A few days ago, an EGoM had decided that RIL will supply gas from the KG basin to the Dadri power project and other upcoming power plants, once they are ready to begin operations.

The counsel for the government also told the HC that "this is without prejudice to the court case and subject to availability", the reports said.

An ADAG spokesperson declined to comment.

Plans are afoot to set up the project in two phases. Reliance Power, which mobilised over Rs 11,500 crore (Rs 115 billion) through its initial public offer, will raise about 25 per cent as equity for the project's first phase, which will cost about Rs 12,000 crore (Rs 120 billion).

The first phase will generate 3,600 MW of electricity with four to five gas turbines.

The softening steel and cement prices will help to reduce expenses for setting up the plant, sources said.

If Reliance Power gets nod for the project within two months, financial closure will be done by September and the project can take off by 2011.

The Dadri project, which was planned before the split of the Ambani brothers, has got most of the clearances, including environmental clearance and water linkages. ADAG is also in possession of more than 2,000 acres at the project site.

Sources said if Reliance Power gets the nod, Dadri will overtake most of the other projects being implemented by the company.

The projects under development such as Butiburi, Rosa Phase-I, 4,000 MW ultra mega power project at Sasan, are currently planned to take off in phases progressively between the end of 2010 and 2016.

Reliance Power is planning to implement about 13 power projects to generate close to 30,000 MW of energy.