Reliance Power has been awarded to build the 4,000 MW Tilaiya mega power project. The Tilaiya project will get its coal from a captive mine that will also be developed by the power project bidder. The coal mine is estimated to have reserves of 972 Mt. The investment is estimated at $4.4bn (Rs 18,000 crore). Reliance was previously awarded two other
coal-fired projects, one at Sasan in Madhya Pradesh state and the other at Krishnapatnam in Andhra Pradesh state. A fourth mega project at Mundhra (Gujarat state) will be built by Tata Power Ltd and is the only project to have completed financial closure. In all, nine maga projects have been lined up for allotment. Several states and regions are clamouring for the remaining and new ones. Current government thinking is that they are the best way to counter the continuing power shortage with 50,000 MW of additional
generation capacity to be created in the coming years.