RIL's 3500 MW project at Dadri in UPThe Reliance Group on Wednesday announced its decision to set up the world's largest gas-based power generation project at Dadri in western Uttar Pradesh.

"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," Anil D Ambani, vice chairman and managing director of Reliance Industries, said in a statement in New Delhi.

The selection of the site in Ghaziabad district follows Reliance's announcement on January 27 about plans to set up a 3,500 MW gas-based power generation plant in UP, at an investment of over Rs 10,000 crore (Rs 100 billion).

The mega project would be based on environment-friendly natural gas discovered by Reliance in Dhirubhai gas fields in KG basin (in Bay of Bengal), the largest gas discovery in 2002-03.

UP government officials and Reliance initially identified 10 sites for the proposed power project. Five sites were further shortlisted, and finally Dadri was selected as the preferred location.

Listing out the advantages of Dadri site, the release said it was 40 km from Delhi, and well connected for easy transportation of equipment, leading to speedy project implementation.

"The proposed power project will produce clean-green power using environment-friendly natural gas as fuel," Ambani said.

Other advantages of the Dadri site include proximity to water source for the project - main Ganga canal is just two to three km from the site; easy evacuation of power produced - Power Grid's Dadri substation is just about eight km from the site; and proximity to the users as the site is suitably located to supply power to Delhi, UP and other adjoining northern states.

Also, the fact that HBJ gas pipeline is less than 15 km from the site would help in natural gas transportation.

With an investment outlay of more than Rs 10,000 crore, the project is expected to bring substantial benefits to millions of consumers in northern India and particularly in UP.

This project, to be developed in phases, would also be the largest power generation plant in the country at a single location.

The company earlier announced that the project would be completed in phases with the first phase to be finished within three years from start.