The Hindu Business Line : Simplex to foray into thermal power production

Mumbai, Jan 16 The Kolkata-based Simplex Infrastructures has put on hold its intentions to enter standalone mining projects and instead is foraying into thermal power production through a joint venture.

It is pinning its hopes on bagging a 1,000 MW thermal power project on a BOT basis in Chhattisgarh. The company has already identified a technical partner for the purpose and the entry would be through a special purpose vehicle.

“This will pave the way for us to enter coal mining, as mining by itself is a capital-intensive proposition,” said Mr N.K. Kakani, Executive Director, Simplex Infrastructures Ltd, here on Monday.

Simplex has an MoU with Thailand-based Banpu Public Company for contract mining in India. Banpu is the largest coal producer and distributor in Thailand. With a combined production capacity of 3.3 million tonnes per annum, Banpu produces sub-bituminous and lignite coal which is suitable for use as a base load fuel for domestic cement producers and utility generators.

Rigs on hire

With an order book of Rs 9,000 crore, Simplex is also sharpening its focus on providing rigs on hire for onshore oil exploration. It recently acquired a Rs 45-crore rig from China, whose services have been placed at the disposal of Oil India in Assam on a two-year contract for $16,000 a day.

Keen on expanding this business, it is also in talks with other oil exploration companies such as Reliance and Cairn India to offer similar services in Rajasthan, Orissa and Andhra Pradesh.

“The ROC is 30 per cent for the rig operations,” Mr Kakani said, adding that Simplex has the option of acquiring four more such rigs from the Chinese manufacturer in four months.

Real estate

On the real estate front, it is building 80 towers of over 20 million sq.ft. Focus is on tie-ups with landowners rather than purchasing land. It is building a one million sq.ft. commercial and residential project in association with the Jharkhand Government, which owns the land. Thirty per cent of the built-up space is to be handed over to the State.

Covering a range of construction activity with over Rs 600 crore worth building equipment, Simplex is on the look out for acquiring a pure construction company in eastern Europe to further its reach to West Asia and North Africa.

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