Comments
State-promoted Gujarat Minerals Development Corporation (GMDC) and Gokul Refoils and Solvent Ltd (GRSL) will invest Rs 670 crore in setting up a 125 megawatt (MW), lignite-based thermal power plant in Surat district of the State.
The project will be completed in three years. It will be set up in the 61 hectares of land GRSL has bought at Tadkeshwar in Surat district recently, Mr Praveen Khandelwal, Vice-President, Corporate Strategy, GRSL, told Business Line here on Thursday.
While the Gokul Group, GMDC and its associates will share 60 MW each of the generated power, the balance five MW will be available to the open market, he said.
GMDC has lignite mines next to the project and will supply 8.5 to 9 lakh tonnes of the fuel required per annum through a conveyor belt, Mr Khandelwal added.
GRSL, a BSE and NSE-listed leading edible oil company in the FMCG sector, announced on Thursday that it has received the State Government's approval for enhancing the capacity of its upcoming thermal power plant from 80 MW to 125 MW.
The power project is a joint venture between the Gokul Group and GMDC in the equity ratio of 74:26, to be funded by a combination of debt and equity in the proportion of 70:30.
GMDC has committed 100 per cent raw material supply (lignite and limestone) to the project which is a big advantage as other future power projects are restricted by lack of fuel supply because of current scarcity of domestic coal allocation. The two JV partners would be benefited in terms of cost savings as the captive user would derive power from the project at Rs 3.40 per unit as against the grid rate of Rs 5.50 per unit. The plant will ensure uninterrupted power supply to GRSL.
GRSL deals in edible oils extracted from soyabean, cottonseed, palm (Palmolein), mustard, vanaspati and industrial oils such as castor oil. The company has offices in Singapore and Mauritius to facilitate its international trading operations.
The Ahmedabad-headquartered GRSL has four manufacturing facilities in Sidhpur, Gandhidham, Surat (Aall in Gujarat) and Haldia (West Bengal).
Its sales in 2010-11 were Rs 4,536 crore with a net profit of Rs 62 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.