Renewable energy co Jinbhuvish to set up coal-based thermal plant in Maharashtra’s Yavatmal district

The first phase of a 600 MW coal-based thermal power project is to take shape in Vidarbha’s Yavatmal district in Maharashtra.

To be built on 800 acres, the project is set to generate employment for around 10,000 people. The Maharashtra Government has given its stamp of approval to the project, which has bagged foreign direct investment by a Korean company.

The Korea South East Power Company (Kosep), a subsidiary of the Korean Government owned Korea Electric Power Corporation, has taken a 40 per cent stake in Jinbhuvish Power Generation, a Jinbhuvish group company, for around ₹1,500 crore.

Jinbhuvish Power Generation is setting up a 600 MW coal- based thermal power project in Yavatmal, at a cost of ₹3,450 crore.

Manish Mehta, Chairman of the Jinbhuvish Group told Business Line , “We have been in renewable energy for the past 12 years. We are now graduating to thermal power. Though Kosep are to take 40 per cent equity, we would continue to remain promoters.”

Speaking about the decision to invest in Yavatmal, Mehta said, “We belong to Nagpur and Yavatmal is close by. It is a highly backward area, and we wanted to do something for the local community. Since coal mines are in good proximity, we decided on the area.”

Stating that it took six years to get clearances on the land and environment front, “given that it is a coal- based power plant,” Mehta saidKosep decided to invest in the power plant “only recently”.

As per the agreement, Kosep will provide technical support to Jinbhuvish’s power plant, which is expected to be commissioned in 2016. The project is being developed by the company in two phases, with each phase having 300 MW capacity.

Other lenders for the project are Rural Electrification Corporation Ltd, Power Finance Corporation, PTC India Financial Services, and India Infrastructure Finance Company.

Maintaining that several foreign investors were in touch with the group to invest in the power project, Mehta added, “Due diligence was also undertaken by four big companies, who were looking to invest in India and looking for suitable equity.

"The fact that Kosep decided to provide technological support helped make up our mind, since Korean companies are known to be good in technology and have the lowest level of environmental issues in the world.”

As for Kosep's interest, Mehta added: “Dynamic changes are happening in India and the economy is going to improve. Since they already have a good capacity generation in Korea, they wanted to venture out to various countries.

"They looked at Turkey, Nepal and Pakistan before zeroing down on India.”

Speaking about the Jinbhuvish group which is six decades old, Mehta said the special purpose vehicle company for the power plant was around six years old.

“As a group, we are into steel, construction, fertiliser, sugar, ethanol and power. We have been doing cogeneration of power along with the sugar factories, a biomas-based cogeneration.”'

Mehta said the company aimed to complete the first power plant in the 12th plan itself.

“Once this plant is operational, we would like to increase capacity. We have other power projects in the pipeline, in Maharashtra, another one in Yavatmal, then in Madhya Pradesh and in Odisha,” he added.

COMMENT NOW