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Manipal, Nov. 3

NAGARJUNA Power Corporation Ltd is likely to award the operation and maintenance (O&M) contract of its project at Padubidri in Udupi district of Karnataka to one of its strategic investors.

Addressing newspersons here on Thursday, Mr Praveer Sinha, Chief Operating Officer of Nagarjuna Power Corporation Ltd, said that the company is in discussion with one of the strategic investors for the O&M contract.However, Mr Sinha did not specify the name of the contractor. Asked if the contractor will have equity investment in the project, he said, "They will have equity stake in the project."

To a query on the equity participation by some foreign companies in the project, Mr Sinha said the company is in discussion with a couple of them. Financial closure in 8 weeks: Mr Sinha said Nagarjuna Power Corporation Ltd has received the approval of the project cost and tariff related parameters from the Central Regulatory Electricity Commission as per the Electricity Act 2003. "Based on this, the project is expected to achieve financial closure within the next eight weeks," he said.

Asked about the demand for the power produced at the plant, he said the Mangalore Electricity Supply Company would take maximum supply.Stating that the company will take all the measures to protect environment in the region, he said it would set up flue gas desulpharisation plant right at the inception of the power plant. Only a few power plants in the country have this facility, he claimed. Captive jetty at NMPT: Stating that the company is planning to set up a captive jetty at New Mangalore Port, Mr Sinha said imported coal would be loaded on to closed railway wagons at the jetty.

Later, he told Business Line that the company is planning to set up the jetty at a cost of Rs 220 crore. The jetty will be made ready for use with the commissioning of the plant at Udupi.

(This article was published in the Business Line print edition dated November 4, 2005)
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