The Orissa government is aiming at rapid industrialisation of the state. Towards this end, the state government is extending comprehensive assistance to the power project through active participation.

The government will assist the company for single window clearances and approvals. The state government will also recommend to the central government for allocation of captive coal blocks or will assist in providing necessary coal linkages for the project.

The Orissa government nominated agency will purchase a portion of the power generated, for which a PPA will be signed subsequently.

Being a mega power project, the company may also sell power to distribution entities from other states. The company will serve the power requirements of Tata Steel''s proposed steel plant in the state as well as certain large industrial units in Orissa.

"The MoU signifies a beginning of a new relationship between Tata Power and the government of Orissa towards bridging the power requirements of the state and the country," says Adi Engineer, director of the company. "With this MoU, Tata Power has taken another step towards its growth plans and increasing its national footprint. The agreement also reiterates the commitment of the Tata group towards the state of Orissa."

"As India''s largest private power sector utility, we believe that joint co-operation with the government is essential in meeting the targeted demand for power in the country. The MoU highlights the commitment of Tata Power to the state of Orissa and commends the excellent cooperation provided by the state government," added S Ramakrishnan, executive director of the company.

Tata Power has signed a similar MoU with the Maharashtra government. The company is currently in the process of inviting bids for setting up over 2000 MW coastal power plants.