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TILAIYA UMPP – LOSS FOR JHARKHAND
The economic momentum of Jharkhand will take a jolt with the with the shelving of proposed thermal plant Ultra Mega Power Project at Tilaiya (Hazaribagh). Reliance (Anil Ambani Group) has just abandoned the mega power plant designed to generate 3960 MW due to inordinate delays in land acquisition – they have waited for years and in the meanwhile project cost has risen and the expenses incurred so far is now a dead loss. Many of India’s major industrial and infrastructure projects are hanging due to land availability uncertainties. So far billions of rupees have been spent by various investors and they are stuck.
This abandonment will also have a fall out on the investment climate of India. India’s failure to reform the input side (land, labour, raw materials availability) makes the reform process only partially effective).