The coal-based project is being developed by the Union power ministry in association with Central Electricity Authority (CEA) and Power Finance Corporation and awarded to developers based on competitive bidding.

BPIC, which is a joint venture consultant firm of the Bihar government and Infrastructure Leasing & Financial Services Limited (IL&FS), has been entrusted with the job of preparing a preliminary report to find the possibility of setting up an ultra mega power project in Bihar.

Fifty per cent of the power generated goes to the state where the plant is situated and the rest goes into the central quota. The plant could be commissioned in five to six years.

The identified land is only 14 km from Banka town and water to the project can be supplied from Sultanganj, about 65 km from the site. The plant could draw 120 cusecs of water for power generation from Sultanganj via pipes.

Abhijit Group, a private firm, is also building a power plant in the district.

It needs to be recalled that the Centre had given approval to set up the ultra mega power project in Bihar in July last and a high-level technical team comprising officials from CEA and PFC was sent to Bihar. The team conducted a detailed study of the topography of the state and the available resources for setting up the plant.

Reports said that the CEA team will visit Bihar again to inspect the site selected for the project.