Birlas await Central nod for UP power plant

Reliance Industries arrival on Uttar Pradesh radar has paid huge dividends. Seeing this, other industrial houses have also started diverting...

Reliance Industries arrival on Uttar Pradesh radar has paid huge dividends. Seeing this, other industrial houses have also started diverting their business activities to the state. And these days, Chief Minister Mulayam Singh Yadav is busy clearing the deck for the Birla Group, which wants to set up power generation units here.

Mulayam has sent recommendations to the Centre for coal allotment to Birla Group for setting up their power generation plant.

A decision to this effect will be taken at a meeting of the Coal Allotment Committee at the Centre, on October 28.

Once the committee clears the allotment for Birlas, the proposal will then be put up before the Mulayam cabinet for final approval.

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‘‘There are two fundamental requirements for setting up a power generation plant: one is water linkage and the other is coal allotment, which is done by the Centre. For this, we have sent recommendations to the Centre,’’ said Chief Managing Director, A.K. Mishra.

Meanwhile, Birla Group has identified a plot of land in Sonebhadra district for putting up its 1,000 MW plant. Sources in the Uttar Pradesh Power Corporation (UPPC) explained the rationale behind the big industrial houses getting attracted towards the state: Chief Minister Mulayam Singh has made extensive changes in the policy for investment in power generation sector.

The policy offers special benefits to those investors who are ready to put in more than Rs 1,000 crore in the power sector.

Besides, the government’s decision to sanction Special Economic Zone (SEZ) status to Reliance power project area has also given a boost to other investors, claimed the sources. ‘‘The SEZ ensures that the company will get subsidy and all Central tax relaxation on raw products.’’

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The only condition, however, in the government policy is that the company putting up its plant in Uttar Pradesh will sell 40 per cent of its total production to the state government only, whereas the rest can be sold to others.

Birlas are offering an investment of Rs 4,000 crore to produce 1,000 MW electricity, of which they have agreed to give 40 per cent to the state.