Mumbai: The Reliance Group yesterday (Feb 18, 2004) announced its decision to set up the world's-largest gas-based power generation project at Dadri in Ghaziabad district of Western Uttar Pradesh.

On Jan 27, 2004, Reliance announced its plans to set up a 3,500 MW gas-based power generation plant in Uttar Pradesh. The mega project will be based on environment-friendly natural gas discovered by Reliance in Dhirubhai gas fields in KG basin, the world's largest gas discovery in the year 2002-03.

Officials of the Government of Uttar Pradesh and Reliance initially identified 10 sites for the proposed mega power project. Five sites were further short-listed, and finally Dadri was selected as the preferred location for the proposed project.

Anil Ambani, Vice-Chairman & Managing Director, Reliance Industries Limited, commenting on the development said, "The ultimate objective of selecting the site was to ensure the least cost of delivered power to millions of consumers by optimisation of site development expenses, proximity to gas and water sources and well-developed infrastructure facilities. The proposed mega power project will produce clean-green power using environment-friendly natural gas as fuel."

The specific advantages of the Dadri site are.

· Site is 40 km from the State of Delhi

· Well-connected site for easy transportation of equipment, leading to speedy project implementation

· Proximity to the water source for the project - Main Ganga Canal is just 2-3 km away from the site

· HBJ gas pipeline is under 15 km from the site - will help in natural gas transportation

· Easy evacuation of power produced - Power Grid's Dadri sub-station is just about 8 km from the site

· Proximity to users - site is suitably located to supply power to Delhi, Uttar Pradesh and other adjoining Northern States

With an investment outlay of more than Rs 10,000 crore ($ 2.2 billion), the power project will bring substantial benefits to millions of consumers in Northern India and particularly in the State of Uttar Pradesh. This project, to be developed in phases, will also be the largest power generating plant in the country at a single location.