Karnataka Power Corpn. Ltd is planning to set up a 2100 MW (3 x 700 MW) gas based thermal power project in phases of 4x350 MW. The company had invited bids in August 2010 and Evaluation of bids has been going on. GAIL will lay pipeline from LNG terminal in Dhabol to Bidadi. The State Government has entered into a Memorandum of Understanding (MoU) with the GAIL regarding the supply of gas. The laying of the pipeline will be completed by March 2012 and the power plant first unit ( 700 MW) is also likely to commence generation in 2012. The project was announced in March 2003 and it will entail an outlay of Rs.5,600 crore (cost of 1 MW being equal to Rs.4 crore). The State Government approval was received in April 2010 and an environmental clearance was received in May 2006. It will be set up 500 metres from Mysore Road in Harohalli, Bidadi, Bangalore in Karnataka. Ernst & Young is the consultant for the project.
The project will proceed with phase I of 700 MW and will scale up later depending upon the international gas prices.