The company was selected in February 2009 to build the 3,960MW Tilaiya ultra mega power project (UMPP) in Hazaribagh district in the state of Jharkhand.
A special purpose vehicle Jharkhand Integrated Power (JIPL) was formed for the construction of the project.
JIPL signed a 25-year PPA with 18 power off-takers in 10 states.
Reliance Power was also allocated Kerendari BC captive coal mine block to fuel plant.
Under the terms of the agreement, the state government was to provide land and other clearances to Reliance by February 2010.
The company said it has decided to terminate the contract it did not get the possession of the land and the captive coal mine even after more than five years of delay.
Reliance Power said in a statement: "In spite of more than 25 review meetings and extensive and continuous follow-ups with the State Government of Jharkhand over the last 5½ years, the required land is yet to be made available.
Even after relentlessly pursuing the project development for nearly 5½ years, due to procurers’ failure to provide land for the project, execution timeframe continues to remain uncertain."
The company estimates that the project cannot be completed before 2023-24.
The decision is expected to reduce Reliance Power’s future capex pipeline by nearly approximately Rs36bn ($5.6bn).
Currently, Reliance Power operates about six facilities of 6,000MW and plans to focus on developing renewable and hydro power projects.
