Reliance power said today that because of the inordinate delays in land acquisition, it has terminated the contract of Rs 36,000 crore Tilaiya ultra mega power project in Jharkhand.

In August 2009, the firm had won rights to set up a 3,960 MW power plant at Hazaribagh in Jharkhand after bidding a levelised tariff of Rs 1.77 per unit but as the government had not provided the required land, the project couldn’t start even after more than five years.

The company in a statement said, Jharkhand Integrated Power Ltd, a wholly-owned subsidiary of Reliance Power, “has terminated the Power Purchase Agreement (PPA) of its 3,960 MW Tilaiya Ultra Mega Power Project (UMPP) in district Hazaribagh, Jharkhand.”