The Hindu Business Line : IFFCO forays into power, ropes in Chhattisgarh SEB to form joint venture

INDIAN Farmers Fertiliser Cooperative Ltd (IFFCO) is foraying into power generation in a big way. It has signed a shareholders agreement with the Chhattisgarh State Electricity Board (CSEB) to form a joint venture company named IFFCO Chhattisgarh Power Ltd (ICPL) for setting up a 1,000-MW thermal power project with an estimated investment of Rs 4,500 crore at the pit head of a coal mine.

The Managing Director of IFFCO, Mr U.S. Awasthi, said the co-operative, under its Vision 2010 programme, has decided to make a foray into power to provide another important input — electricity to the farmers, apart from fertiliser and seeds.

The agreement was signed by Mr Awasthi and the Chairman of CSEB, Mr Rajib Ranjan, on Thursday. Earlier, IFFCO had signed a memorandum of understanding (MoU) with the Government of Chhattisgarh and the CSEB for setting up 1,000-MW project in the Sarguja district of Chhattisgarh.

In a joint statement, Mr Awasthi and Mr Ranjan said the project would have a 70:30 debt equity ratio. On the equity side, IFFCO will hold 74 per cent stake and CSEB will hold the rest.

The financial closure of the project is expected by December 2006. The project will start generating power from 2010.

CSEB will offtake up to 90 per cent of power generated from the project. It is expected to provide livelihood opportunities to several thousand people in the under developed Sarguja district of Chhattisgarh.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
No plans to merge MRPL with ONGC, says Subir Raha

Ma Foi to convert quarterly employment survey to half-yearly

PSL bags pipe coating contract from Hind Petro

ITH promotes European river cruises in India

Excel to buy Aimco shares

International Tractors mulls assembly unit in US

Nalco to develop coal block in Orissa for captive use

IFFCO forays into power, ropes in Chhattisgarh SEB to form joint venture

Moving up the energy value chain — Tripura power project may make paradigm shift in ONGC plans