Financial Daily from THE HINDU group of publications
Friday, Oct 14, 2005
Financial Daily from THE HINDU group of publications Friday, Oct 14, 2005 |
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Corporate
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New Projects GIPCL plans two 1,000 MW plants; to enter distribution Our Bureau
New Delhi , Oct 13 GUJARAT Industries Power Company Ltd (GIPCL) on Thursday said it was working on setting up two 1,000-MW projects in South Gujarat, besides diversifying into power distribution in the State as part of its expansion plans. The company is tapping the capital market to fund a 250-300 MW, lignite-based expansion project "We hope to finalise the engineering, procurement, and construction (EPC) contract for the power plant by next month," GIPCL Managing Director, Mr L. Chuaungo said on the sidelines of a press conference for the company's public issue. The public issue, which opened today, will close on October 19. The public offer, through book-building route, has been priced Rs 63-75 per share and targets around Rs 275 crore. The proceeds would fund the lignite-based expansion plant near Surat and the development of lignite mines for captive fuel requirement. The project is estimated to cost around Rs 1,200 crore and GIPCL will follow a three-step, single-stage bidding process to select the EPC contractor. A Bharat Heavy Electricals Ltd-Larsen & Toubro combine and a Reliance Energy-Alstom consortium are in the fray to set up the project. The new plant will be located adjacent to the company's existing 250-MW lignite power station near Surat. The plant is expected to go on stream by 2009, raising the generation capacity of the company to around 850 MW. The power plant would employ circulating fluidised bed combustion technology, he said. The power plant and the captive mine project would be financed on a 75:25 debt-equity ratio. The company had, earlier this year, invited expressions of interest for joint venture partnerships for setting up two 1,000-MW lignite-based projects in south Gujarat. Mr Chuaungo said five parties had evinced interest in partnering GIPCL. On its distribution foray, Mr Chuaungo said, "We will look at the opportunity (distribution) as and when it comes." The Gujarat government had last year invited expressions of interest for distribution on a franchisee basis in cities including Vadodara and Rajkot. The company has submitted its expression of interest for the Vadodara circle, company officials said.
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