Rahul Wadke

Mumbai, Sept 30 Bharat Heavy Electricals Ltd (BHEL) could consider taking equity in the brownfield expansion of the Koradi Thermal Power Station near Nagpur. The Rs 8,000-crore expansion would be based on super-critical technology and will add 1,600 mw to the State grid.

Maharashtra State Power Generation Co Ltd (Maha Genco), the operator of the plant, will undertake the expansion.

Industry sources familiar with the development said BHEL has also been talking to various State electricity boards and generation companies for equity participation. The equity could also come in the form of important equipment. In a power plant, 50 per cent of the project cost comprises critical equipment like boiler, turbines and generators.

The project will have 80:20 debt-equity ratio, and Maha Genco would soon approach the Maharashtra government for Rs 1,600 crore as equity participation. Mr Ajoy Mehta, Managing Director of Maha Genco, said that if there is a gap in the equity funding from the State Government then additional equity would be sought from other companies. Mr Mehta said there could be difficulties in installing equipment at the site as the equipments are extremely heavy and the approach roads are narrow. Therefore, there are suggestions for setting up two units of 800 MW capacity each or three units of 500 MW, he said.

(This article was published in the Business Line print edition dated October 1, 2007)
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