Essar Power (Gujarat) Limited (EPGL), a subsidiary of Essar Power Holdings Limited, is planning to invest Rs 4,800 crore to set up a 1,200-MW power plant in Jamnagar, Gujarat.
EPGL has bagged this project through a competitive bidding process of the Gujarat government, which also saw participation from other major players like Adani Energy and Jindal Power.
According to Essar sources, EPHL has chalked out plans to increase its overall generation capacity to 6,500 mw from the current 1,200 mw by 2012, which will entail an investment of Rs 20, 000 crore. According to AK Srivastava, MD, Essar Power, “The Gujarat plant will use high quality imported coal from Indonesia and South Africa as fuel.” The company expects the financing of the project to be in the debt/equity ratio of 3:1. The financial closureis expected to be achieved before the end of the year.”
Sources said that EPGL has identified around 700 acres of land near Khambalia in Jamnagar district for executing the project. The company is in discussions with major Chinese companies like Sanghai Electric and others for equipment supply, which are expected to be finalised within one month.
EPGL has entered into a 25-year power purchase agreement with the Gujarat government for supplying 1,000 MW of power at a levelised tariff of Rs.2.40 per unit. The company is free to sell the balance power. As per the agreement, the project should be completed within four years from the date of awarding, which was February 2007.
The company will create its own captive infrastructure to receive imported coal by setting up a port and other related facilities. The Kutch area in Gujarat is known for its natural deep-water draft and its ability to handle vessels around the year in all seasons. Essar’s port will be built with a capability to handle large vessels.
Courtesy : Expressindia.com
EPGL has bagged this project through a competitive bidding process of the Gujarat government, which also saw participation from other major players like Adani Energy and Jindal Power.
According to Essar sources, EPHL has chalked out plans to increase its overall generation capacity to 6,500 mw from the current 1,200 mw by 2012, which will entail an investment of Rs 20, 000 crore. According to AK Srivastava, MD, Essar Power, “The Gujarat plant will use high quality imported coal from Indonesia and South Africa as fuel.” The company expects the financing of the project to be in the debt/equity ratio of 3:1. The financial closureis expected to be achieved before the end of the year.”
Sources said that EPGL has identified around 700 acres of land near Khambalia in Jamnagar district for executing the project. The company is in discussions with major Chinese companies like Sanghai Electric and others for equipment supply, which are expected to be finalised within one month.
EPGL has entered into a 25-year power purchase agreement with the Gujarat government for supplying 1,000 MW of power at a levelised tariff of Rs.2.40 per unit. The company is free to sell the balance power. As per the agreement, the project should be completed within four years from the date of awarding, which was February 2007.
The company will create its own captive infrastructure to receive imported coal by setting up a port and other related facilities. The Kutch area in Gujarat is known for its natural deep-water draft and its ability to handle vessels around the year in all seasons. Essar’s port will be built with a capability to handle large vessels.
Courtesy : Expressindia.com