Anil Ambani group firm Reliance Energy Limited started work at the project site of 7,480 MW gas-fired Dadri power plant in Uttar Pradesh on Thursday.
The company has acquired 2,100 acres for the project and will acquire another 250 acres shortly, a company spokesperson said in New Delhi.
An inaugural ceremony was held to start construction for Reliance Energy Generating Ltd's 5,600 MW natural gas-based combined cycle power project at the proposed Dhirubhai Ambani Energy City in Dadri.
The first phase of 5,600 MW is slated to be completed by 2010, after which the capacity would be increased to 7,480 MW.
Work on Dadri project to start tomorrow
The project would cost more than Rs 20,000 crore (Rs 200 billion).
The company has already received all necessary clearances, including environment clearance and civil aviation clearances.
Comfort letters have also been received for power take-off from Uttar Pradesh, Delhi, Rajasthan, Punjab and Haryana.
The project has been embroiled in controversies from the beginning, ranging from acquisition of farmers' land to refusal by the government to approve the agreement relating to price of natural gas to be sold by Reliance Industries Ltd.
Reliance Energy Director Business Development J P Chalasani and Uttar Pradesh government's Principal Secretary Ashok Khurana were among those present on the occasion.
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