Wednesday, April 7, 2010

BGR Energy plans 1,320 MW plant in Orissa

Power equipment maker BGR Energy Systems plans to set up a 62.87 billion rupees, 1,320 MW coal-fired power plant in Orissa, two sources with direct knowledge of the matter told Reuters on Wednesday

"It will be completed in 60 months from the date of MoU. The state government will assist the project with land, water and all mandatory clearances. It will also facilitate allotment of captive coal blocks," a source said. MoU, or memorandum of understanding, is an initial written pact.

Chennai-based BGR Energy is likely to sign the initial pact with Orissa government in a few days time, sources said.

The Orissa power plant is likely to need 600-800 acres of land in Bhapur, Nayagarh district of Orissa, and would consume 7-8 MTPA coal, sources said adding, the state government will buy 12-14 percent power produced from the project.

"The rate of the purchased power will be determined by the Orissa Electricity Regulatory Commission and it will be at variable cost. BGR Energy would be free to sell the remaining power within or outside Orissa," a source said.

Till Feb 2009, the eastern Indian state of Orissa has signed pacts with various companies including Sterlite Energy, GMR Energy, CESC Ltd for setting up power projects with aggregate capacity of 24,570 MW, a government website showed.

Cuddalore Powergen Corp, a BGR group company, is engaged in setting up of 2X660 MW power plant in south India, which is yet to fully acquire the required land but is likely to achieve financial closure in next six months, a source added.

Srikanth Nyshadham

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