The Hindu Business Line : Tata Power looking at coal mines abroad; Lanco in talks for Chinese equipment

Tata Power Company and the Lanco Infratech- Globeleq combine have kicked off the implementation of their respective ultra mega power projects with Tata Power Company exploring coal mines buyouts overseas for Mundra and the Lanco consortium talking with the Chinese firm Dongfang for equipment supply for Sasan.

The two players were awarded contracts for the coal-fired projects in Gujarat and Madhya Pradesh recently.

Confirming the move, the Tata Power Managing Director, Mr Prasad R. Menon, said on Thursday that Tata Power plans to import around 12 million tonnes of coal annually starting 2012 for its upcoming coal-fired project in Gujarat and the company is also scouting for coal mines abroad.

The Centre has awarded Tata Power a contract to build a 4,000-MW project at Mundra.

Mr Menon said Tata Power was looking at mine acquisitions and coal supplies from Australia, Indonesia and South Africa.

Equipment supply

The company is also considering overseas suppliers for boilers and turbines for the Gujarat power project. "We are looking at (equipment supply) possibilities in South-East Asia, East Asia and possibly in West Europe...We need both (competitive) price and (timely) delivery," he said.

Tata Power is yet to finalise the funding pattern for the project, which is estimated to cost around Rs 18,000 crore.

"We are yet to decide whether it will be 70:30 (debt-to-equity ratio) or 75:25," Mr Menon said. The company will finalise the funding pattern for the project in the next six months, he said.

Meanwhile, the Lanco combine is engaged in talks with the Chinese company for supply of boiler and turbine equipment for the Sasan project in Madhya Pradesh for which it has been awarded a contract.

The company plans to borrow around Rs 13,000 crore to build the 4,000 MW power project, the Lanco Infratech Chairman, Mr L. Madhusudhan Rao, said here at the sidelines of a Government event to issue letter of intent (LoI) to both players.

About 80 per cent of the total project cost will be funded through loans and the remaining through equity, said Mr Rao.

New policy

Meanwhile, at the function, the Union Power Minister, Mr Sushilkumar Shinde, said that the Union Cabinet would shortly discuss a new hydro power policy that aims at attracting greater private investment.

"The Cabinet will soon take up new hydro power policy," he said, adding this would make it more attractive for private players to enter the sector.

India has a total hydro power potential of 1,50,000 MW, with most of it in Jammu and Kashmir, Himachal Pradesh, Uttaranchal, Sikkim and Arunachal Pradesh.

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