Business Daily from THE HINDU group of publications
Wednesday, Aug 29, 2007
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Business Daily from THE HINDU group of publications Wednesday, Aug 29, 2007 ePaper |
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Power Corporate - New Projects States - Gujarat Essar setting up power plant in Gujarat
Our Bureau Mumbai, Aug. 28 Essar Group said on Tuesday that it would be setting up a 1,200-MW plant at Jamnagar in Gujarat at an estimated cost of Rs 4,800 crore. Essar Power (Gujarat) Ltd (EPGL) has entered into a 25-year power purchase agreement with the Gujarat Government for supplying 1,000 MW at Rs 2.40 per unit, the company said in a press release. Higher tariff
The tariff is higher compared to those quoted by the mega power projects of Sasan and Mundra. The 4,000-MW Sasan project, which was bagged by Reliance would be selling the power at Rs 1.196 per unit. The 400-MW Mundra project, to be set up by Tata Power, had quoted the rate of Rs 2.26 per unit. Mr A.K. Srivastava, Managing Director, Essar Power Holdings, said that the power plant will be coal-based and negotiations are under way for importing coal from Indonesia. Of the total coal requirement of three million tonnes, about 60 per cent would be bought through a 20-year tie up. The rest would be bought from spot market, he said. Mr Srivastava said the company plans to finance the project with a debt/equity ratio of 3:1. After selling 1,000 MW to Gujarat Government and utilising 100 MW for captive consumption, the remaining 100 MW would be sold in the open market.
Related Stories: Essar Power may bag Jamnagar thermal contract More Stories on : Power | New Projects | Gujarat
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