Earlier, Simar was selected, as the power plant required large amount of imported coal, which required it to be located at a port. However, according to a survey, development of a port at Simar was not feasible. Hence, the plant had to be relocated.

The company had earlier inked two memorandum of understandings (MoUs) with Gujarat government for developing two power plants having installation capacity of 1,400MW and 1000MW respectively in Junagadh.

Krishna Deshika, joint group CFO of JSW Energy, told Business Standard: “The company is now proposing to set up 2,400MW power project at Dahej, which include 1,600MW power plant in first phase and 800MW in the second phase. The company had plans to put up this capacity at Junagadh earlier.”

The company has requested the Gujarat Industrial Development Corporation to allocate around 1,500 acres of land for the Dahej project.