The MoU signing ceremony in Bhubaneswar on Tuesday. Picture by Sanjib Mukherjee

Bhubaneswar, Sept. 27: Anil Ambani-controlled Reliance Energy Limited (REL) was absent at today’s MoU signing ceremony in which 10 companies inked pacts with the Orissa government to generate 10,920 megawatt of power at a proposed investment of Rs 46,811 crore.

REL, which holds a majority stake in three power distribution companies in the state — Nesco, Wesco and Southco — owes around Rs 2,000 crore to Orissa’s power generation agency Gridco. Chief minister Naveen Patnaik has made it clear that the company has to clear its dues before it draws up more business proposals in the state.

REL intends to set up a coal-based 4,000-megawatt thermal power plant at Hirma in Jharsuguda district at an investment of Rs 16,236 crore in the first phase. A REL official said the MoU would be signed in October.

The biggest project signed today was by Anil Agarwal-controlled Sterlite Energy, which has proposed a 2,400-mw project at Bhurkund in Dhenkanal district at an estimated investment of Rs 7,481 crore. Similarly, Lanco Group intends to set up a 1,320-megawatt project at Babandh village of Dhenkanal district at an investment of Rs 4,200 crore.

Tata Power plans to set up a 1,000-mw coal-based power project at Naraj Marthapur near Cuttack at an investment of around Rs 9,000 crore.

Energy secretary Asit Tripathy today signed MoUs with the company representatives. Bhushan Energy, CESC, Essar Power, Jindal Photofilms and Visa Power also signed MoUs to set up thermal power plants of 1,000 mw each in Angul, Dhenkanal and Cuttack districts. KVK Nilachal Power and Monnet Ispat & Energy have proposed to set up plants of 600 mw each.

The companies have agreed to contribute 6 paise per unit of energy sent out from the plants, but not sold in the state, towards an environment management fund. Moreover, a nominated agency authorised by the state government will have the right to purchase up to 25 per cent of the power sent out at tariffs set by the Orissa Electricity Regulatory Commission. They have also agreed to rehabilitate the land oustees according to the state’s policy.

“The state will earn Rs 1,790 crore per year as revenue from these plants. There is scope for direct employment of 10,000 people from the state and additional 20,000 indirectly,” Patnaik said. “With the state having 28 per cent of the country’s coal reserves, it is possible to sustain a thermal generation of 1 lakh megawatt for 100 years,” said state energy minister Suryo Patro.