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The state cabinet approved a proposal for a joint venture between the UP government and the National Thermal Power Corporation (NTPC) to establish the Obra D project. This project aims to increase Uttar Pradesh's power generation capacity and provide affordable electricity to the public. It will consist of two ultra supercritical units with a combined generation capacity of 1600 megawatts (MW) at the Obra thermal power generation complex in Sonbhadra. The project, with each unit capable of generating 800 MW, will require an investment of Rs 179.27 billion. Both the state government and NTPC will contribute to the project on a 50:50 basis and hold a 30% equity share, while the remaining 70% will come from a loan. The state government's equity is estimated to be around Rs 26.97 billion. The Obra-D project was given the green light during a meeting of the state cabinet presided over by Yogi Adityanath, Chief Minister. AK Sharma, State Energy Minister .while briefing the media, highlighted the plant's advanced technology, efficiency, and reduced coal consumption. The project will occupy 500 acres of available land. Sharma mentioned that as coal for the plant would be easily accessible in the vicinity, the electricity generated would cost Rs 4.89 per unit, compared to the current rate of Rs 5.50 per unit. He also stated that if necessary, additional land would be allocated for the project. According to Sharma, the proposed Obra-D plant will contribute a significant portion, approximately one-fourth, of Uttar Pradesh's total thermal power generation capacity, which currently stands at nearly 7000 MW. The minister noted a consistent increase in power consumption within the state. During the summer, the peak demand for electricity reached an unprecedented 27,000 MW. Sharma highlighted that the state government and NTPC had signed a memorandum of understanding (MoU) during the Global Investors Summit held in Lucknow from February 10 to 12, 2023. Sharma emphasised that this MoU was an ambitious undertaking. He mentioned that the state government proposed to Prime Minister Narendra Modi, who was visiting Varanasi at that time, to develop Obra and Sonbhadra as the country's energy hub. The Prime Minister issued the necessary directives to the Union Minister for Energy, the Energy Secretary, and the NTPC. Sharma further noted that the NTPC has now taken a significant step forward in this regard. He informed that the first unit of the Obra-D plant is expected to be operational within 50 months, with the second unit becoming functional six months later, after a total of 56 months. Also read: NTPC Green Energy invites bids for Offshore Wind Power Projects in IndiaGUVNL invites bids for 500 MW Wind Power Projects with Greenshoe Option