Uttar Pradesh Cabinet on July 11 approved building two thermal power projects of 800 MW each at the cost of ₹18,000 crore in Sonbhadra district. The State government said it is the part of U.P.’s efforts to provide cheap electricity to people in the State.
“Consumption of electricity is increasing day by day in the State. During the Global Investors Summit (GIS), we signed an agreement with National Thermal Power Corporation Limited (NTPC) to set up thermal plants at Obra. Today, the project has been approved by the Council of Ministers. The plant will be built on about 500 acres of land and if further land is needed, arrangements will be made for that too,” said U.P. Energy Minister Arvind Kumar Sharma, after the Cabinet meeting.
In the project, the State government and NTPC will have 50-50% participation. While 30% equity will be given for the implementation of the projects, the rest 70% of the amount will be arranged from financial institutions. “Uttar Pradesh government and NTPC will have 50-50 participation in this. In this, 30% equity will be given by both parties and the idea is to take a 70% loan from financial institutions. The first unit is targeted to be ready in 50 months and the second unit in 56 months,” added Mr. Sharma.
