Dadri project set to get UP govt’s nod

NEW DELHI: The Mayawati government in UP is understood to have told the Anil Ambani-led R-ADAG that it has no problems with the proposed 7400-MW, gas-based power project in Dadri. The company has been told that it could go ahead with its plans if it can tie up the gas.

R-ADAG, which has acquired the land and received all necessary clearances for the project, is awaiting fuel linkage from RIL. A gas supply agreement between Reliance Natural Resources, an ADAG company, and RIL has run into trouble and is currently sub-judice.

The petroleum ministry had earlier rejected the agreement and the price at which gas was to be sold to RNRL. The government felt the price was far lower than prevailing market rates.

RIL has now invited bids from potential customers in the power and fertiliser sectors to attain a benchmark market price for its gas from the KG basin. However, RIL did not call for a bid from RNRL.

R-ADAG has not proceeded with the financial closure of the power project as the fuel supply agreement is not in place. According to sources, the company has been told to expedite its plans for the Rosa power plant as well.
A consortium of financial institutions and banks, set up by the power ministry, has already done the first round of due diligence for Dadri.