The INR36bn ($634m) plant with a total 600MW capacity would meet the power requirements of the industrial and distribution utilities in the state.

Reliance Power chief executive officer J.P. Chalasani said with Butibori the company’s operating capacity goes up to 1,540 MW.

"The projects under construction are progressing satisfactorily and with our diversified portfolio of coal, gas, hydro, wind and solar projects, we are well on track to emerge as the largest integrated private sector power company in India," he added.

The second unit is scheduled to commence electricity generation before the end of 2012 where the ash generated by the Bultibori plant will be utilised by Reliance Group’s cement plant.

Reliance Power stated that the plant is one the most compact-sized thermal plants in the country set up in about 275 acres of plant land.