Nava Bharat's Dharmavaram power plant plan put on backburner

Nava Bharat Ventures Ltd has decided to put on hold the proposed 150 MW thermal power plant at Dharmavaram due to delays in environmental clearance but plans to take up another 150 MW plant at Paloncha in Khammam district of Andhra Pradesh.

The Hyderabad-based company, which is into power generation, ferro alloys, mining and sugar business, has decided against taking up the Dharmavaram project in East Godavari district of Andhra Pradesh due to delays in securing environmental clearance, particularly in the eco-sensitive costal region. It is evaluating other options.

“Subject to coal supply linkage, we will take up another 150 MW unit at Paloncha in the State,” Mr G.R.K. Prasad, Director, Finance, Nava Bharat Ventures, said.

Mr Prasad told

Business Line that the company currently has an installed capacity of 228 MW and expects to add another 64 MW unit at Kharagprasad in Orissa by June 2011 and another 150 MW unit by December 2012 coming up at Paloncha. “We will consider another 150 MW thermal power plant at Paloncha if we secure the necessary coal supply assurance. We are in the process of securing linkages. Once this is through, we will take up financial closure.”

The company, which had decided to exit 1,050-MW thermal plant planned in Orissa by entering into stake sale deal with the Essar Power Ltd, has recently concluded the deal after receiving the last tranche of Rs 85 crore, for the transaction.

The power segment continues to be the leading contributor to the company's business, which is based on merchant power sales. The company is also exploring power generation from alternative feed stock such as natural gas at Paloncha, as infrastructure is already in place.

The company is among leading ferro alloys producers in India with 1,25,000 tonnes of manganese and 75,000 tonnes of chrome alloy capacities.

It has also initiated works on power projects in Zambia and for mine revival.