Reliance Power is developing a 300-MW power project in Maharashtra's Butibori industrial area exclusively for the use of industrial units in the area. Maharahtra chief minister Ashok Chavan laid the foundation stone for the project on Sunday.

The coal-based power  project is being developed specifically for the industrial consumers under the group captive power projects (GCPP) model.

For this purpose, Reliance Power Limited and local industries in the MIDC region have launched a special purpose vehicle (SPV), called Nagpur Vidarbha Industries Power Limited.

The first group captive power project in the area, the plant is likely to be operational by 2011.

Priority will be given to industries in the MIDC areas of Butibori and Hingna for supply of power generated from this plant, followed by other industrial areas in the region. Surplus power will be supplied to industries in other regions through open access.

More than 200 industrial units in Butibori and Hingna areas are expected to get uninterrupted power supply once the project becomes operational.

The state currently faces a shortfall of 5000 MW of power while the country as a whole is having a shortage of 30,000 MW, according to union power minister Sushilkumar Shinde, who was present on the occasion.

He said an additional power generating capacity of over 100,000 MW is expected during the 11th five-year plan period in the country against the earlier projection of about 78,000 MW.

These include output of independent power producers and that of renewable power projects and other sources, he said.

State-run power utility National Thermal Power Corporation (NTPC) is setting up a 1000 MW power project in Mouda, near Nagpur. The state will get its share of 450 MW from this plant as well.