The Hindu Business Line : Cetex Petrochem to set up biomass-based power plant

Chennai, May 18 Chennai-based Cetex Petrochemicals Ltd (CPL) is setting up a 12-MW biomass-based power plant at its facility in Manali. The Chairman of CPL, Mr S. Pattu, told Business Line that the power plant was meant to reduce dependency on electricity board supply and eventually cut down utility cost. It would also help the company offset loss incurred due to rising input costs. CPL has set up a subsidiary company, Cetex Energy Generation Co Pvt Ltd, for the power project and received most of the statutory clearances. Negotiations are in the final stages for a power purchase agreement and would be completed in a couple of months, he said. Cetex Energy will sell close to 11 MW to Tamil Nadu Electricity Board, he said. The total cost of the project is Rs 49 crore and it will have financial closure in a month, he said. About 25 per cent will be funded by strategic investors while the rest would come from a consortium of banks, he said.

CPL recently forayed into the manufacture of cinnamic, phenyl propyl, anisyl and styrallyl alcohols used in aromatic and pharmaceutical companies.

The company is scouting for technology to manufacture niche products, Mr Pattu said. It is in talks with companies in the US and Germany and will finalise the deal within six months, he said. This division will contribute about Rs 40 crore in 2009-10, he said.

In 2006-07 CPL registered turnover of Rs 70 crore and hopes to grow by 30 per cent in fiscal 2008. Audited results are yet to be published. The growth was primarily due to diversification into trading in methyl ethyl ketone and products from Petro Canada, he added.

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