Simhapuri Energy has commenced commercial operations of the phase one of its thermal power plant based in Nellore district of Andhra Pradesh.

A 100 per cent subsidiary of Madhucon Projects Ltd, Simhapuri Energy is developing the 1,920-MW Simhapuri project in three phases. The first phase and second phase have two units of 150 MW each and the third phase has two units of 660 MW.

For the Hyderabad-based infrastructure company, this is its maiden power plant now underway with an outlay of Rs 11,270 crore. The project is based on imported coal.

The company has declared the commercial operations of the 150-MW unit on May 4 and expects to add another unit by June. It expects to complete the implementation of second phase of 300 MW during the year.

Coal production

According to Simhapuri Energy, PT Madhucon Indonesia, another subsidiary of Madhucon, has rights to mine three coal projects in Indonesia estimated to host about 1,500 million tonnes.

The company said it has secured all necessary mandatory clearances for the mine, including forest clearance for laying the road and construction of a jetty in Dewas mine. The company expects to begin coal production by June 2012.

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