Consumer electronics giant Videocon Industries is planning to set up two 800 MW coal-based power plants in Gujarat. Earlier, the company had invited bids from global EPC contractors for setting up a 1,600-MW imported coal-based power plant in the state. “But now, Videocon Industries, through its Special Purpose Vehicle (SPV), Pipavav Energy Pvt Ltd, will set up two 800 MW imported coal-based super critical thermal power project near Pipavav port in Gujarat,” the company said.
The cost of this project is expected to be around Rs 8,000 crore, but would depend on several factors, including availability of fuel, sources said. The contractors for the project, to be implemented on a single turnkey basis, would be selected through international competitive bidding before June 9, 2008, they added. The first unit of the plant is expected to commence operations from mid-2012 and the second unit in six months thereafter. In an advertisement on Tuesday, the company said it is scouting for land in Gujarat, West Bengal and Chhattisgarh to set up plants that will generate 5,000 MW of power.
The company recently signed Memoranda of Understanding (MoU) with West Bengal and Chhattisgarh to set up power projects in these states, sources said, adding that the company is on the lookout for a global partner for the power generation business. “We are yet to start the land identification process. Once the land is identified, the company will prepare the feasibility reports,” company sources said, adding that the projects would be financed in the debt-equity ratio of 70:30.
Videocon Industries Chairman, Venugopal Dhoot, however, refused to give details, when asked for clarification. “We do not want to comment on this.No further details can be provided,” he said.
On December 17, Videocon had announced that it would hive off its power, oil and gas, and coal renewable energy into wholly-owned SPVs.
Source: Expressindia.com
27th December, 2007