India's Reliance Power Ltd, an Anil Ambani Group company, will import up to 17 million tonnes of coal a year from 2015 for a power project it bagged this week, a Reliance group official said on Friday.
"We are looking at all options. It could be acquiring stakes in mines and supplying coal to India or having long-term coal supply agreements," Jayaram Chalasani, director for business development at Reliance Energy Ltd (RLEN.B Quote, Profile, Research), told reporters.

Power producer Reliance Energy, part of the same Ambani group, holds 50 percent in Reliance Power, while the rest is controlled through other group companies.

The Indian government is promoting large power projects, each with a capacity of 4,000 megawatts, as it seeks to tackle a chronic power shortage widely viewed as a serious threat to its fast-growing economy.

More than 500 million of India's billion-plus population have little or no access to electricity, and many of those who do face major power cuts.

Chalasani said the power plant in the southern state of Andhra Pradesh would cost 160-170 billion rupees ($4.08-$4.34 billion).

He said the project would be commissioned in phases from September 2013 to October 2015.

"We will be getting coal from outside India. Around 14-17 million tonnes per annum will be needed for the project. The quantity depends on grade and calorific value of the coal." Chalasani said Reliance Power was looking at importing coal from Indonesia, South Africa and Australia.

The power project will be formally transferred from a shell company floated by Power Finance Corp (PWFC.B Quote, Profile, Research) to Reliance Power by Jan. 30, Power Finance's Satnam Singh said.

This is the second so-called ultra mega power project won by Reliance Power, the first being at Sasan in central India, and Chalasani said the firm would be submitting a bid for a similar sized plant at Tilaiya in the eastern state of Jharkhand. ($1=39.16 rupees)