Jamshedpur, June 6: Tata Power has launched a survey in Chandil in neighbouring Seraikela-Kharsawan district to find out whether it would be feasible for the company to go ahead with a thermal unit there.

The power major has plans to set up a 1,000 MW plant Chandil, among the most backward areas of the state, in the initial stage. The company has plans to double the capacity later. Tata Power has initially proposed an investment of Rs 4,000 crore. But the project will depend on the findings of the survey.

Top government sources said a three-member team from Tata Power met state energy department officials, including minister Lalchand Mahto, recently to discuss the Chandil project.

“The Tata Power team informed us that it has engaged Tata Consultancy Engineering (TCE) to undertake the survey. The exercise has begun and TCE will submit its findings within two months,” energy ministry officials said.

Sources said among the areas to be covered by TCE include availability of adequate amount of land, the source of the water that would be needed by the company to operate and rail connectivity for quick transportation of the raw material.

Energy minister Mahto told The Telegraph that he had requested Tata Power to expedite the project.

“I am confident that the survey would throw up positive findings as Chandil is an ideal location for setting up a power plant. Land is available in that area. The Chandil dam of the Subarnarekha Multi-Purpose Project could serve as the source of water and the rail links are also extremely good there,” Mahto said.

Government officials said the CEO (eastern zone) of Tata Power, Ashok Uppal, met chief minister Arjun Munda recently to discuss the company’s investment proposals for Jharkhand.

“While Uppal assured Munda that Tata Power would do its best to serve the state, Munda assured all assistance to the company in all investment initiatives in the state. The chief minister’s office is in touch with the company officials to see to it that it does not face problems in its Maithon project,” a senior government official said.

Tata Power has already decided to set up a power plant in Maithon in Dhanbad district at a cost of about Rs 3,800 crore.

Of the nearly 1,150 acres of land required for the project, the company has acquired about 50 per cent of the land for the project. The work on the actual project will begin as soon as the land acquisition is completed within the next six months.

Apart from the Maithon project, the power major has also invested over Rs 400 crore in the state to undertake an expansion of its existing plant at Jojobera in the city.