Reliance Anil Dhirubhai Ambani Group on Friday unveiled a grand spending plan of over Rs 60,000 crore (Rs 600 billion) in Orissa, which included an investment blueprint for the world's largest pithead thermal power plant.
The 12,000 MW coal-fired plant is expected to be set up at Hirma in Jharsuguda district in phases, ADAG Chairman Anil Ambani said at the state secretariat in Bhubaneswar after a meeting with Chief Minister Naveen Patnaik.
"I have no doubt in my mind that Orissa with its coal reserves will be the power capital of the entire country. Over the next few decades, Orissa will have its rightful place (as a developed state) in India," he said.
Ambani said the outlay for the power plant would be in excess of Rs 50,000 crore (Rs 500 billion), while another Rs 10,000 crore (Rs 100 billion) would be invested for transmission and evacuation of the power generated.
"It will represent the largest investment in power sector anywhere in the world," he said, adding a 4,300 MW coal-fired plant in South Africa was the largest thermal unit at a single location at present.
ADAG's spending plan is also the largest for any project by a group in the country and beats the Rs 52,000 crore (Rs 520 billion) investment proposal of South Korean steel giant Posco and the Rs 30,000-40,000 crore (Rs 300-400 billion) steel plant plan of Mittal Steel - both in Orissa.
Besides Rs 60,000 crore for the power plant and allied works, the group would be investing in a health city, IT and IT related infrastructure in the state.
The health city would comprise a hospital and infrastructure for medical education and research near the capital city, he said.
Ambani said his company proposed to invest Rs 1,000 crore (Rs 10 billion) separately for communication and IT sector and another Rs 500 crore (Rs 5 billion) in the health sector.
The company would first set up a 4,000 MW plant at Hirma, which would be progressively expanded by adding 1,000 MW to the capacity.
"This will be the engine of growth and catalyst for future industrial development... I am looking forward to working with the Orissa government," Ambani said.
Asked to outline a timeframe for the Hirma project, he said as the basic approvals including environmental clearance would take time, the work is expected to begin within six to 12 months.
It would require about four to five years to set up the 4,000 MW plant. "No one has attempted this so far and we are pursuing a fast-track approach."
Replying to questions, Ambani said his company was committed to work within the policy framework of the state. "We need a converged path to reach solutions," he remarked.
As regards the question of displacement, he said the government had a comprehensive rehabilitation and resettlement policy in place as also a policy on environmental protection.
As regards the question of displacement, he said: "We will explain to the people. We will not be able to move forward without the cooperation and appreciation of the people."
When asked why REL was not harnessing atomic energy for power generation as coal is considered a serious pollutant, Ambani said his company was awaiting amendment to the comprehensive Atomic Energy Act.
"But India's energy solutions need a multi-track approach and one single track will not help. We have to tap hydro, thermal, atomic, wind and solar resources to meet the requirement," he said.
