The plant will be constructed at a cost of around Rs 700 crore in the 105-hectare area, and it will produce 90 to 100 MW electricity, read a statement by the state government.
According to reports, the plant will be set up over the land for which a 342 MW gas-based power plant was approved in December 1994 for construction by Essar Power.
Recently, state home minister Dr Narottam Mishra visited the land for the plant that has been allotted to Essar. He was joined by Essar officials, including corporate head Sandeep Jain.
Work related to land and other inspection has already begun, and the project is expected to be completed in a few months.