Sunday, May 2, 2010

Hiranandanis to foray into power biz;to set up Rs 10K-cr plant

Mumbai-based real estate player Hiranandani Group plans to set up a 2,500-MW plant near Pune at an investment of more than Rs 10,000 crore, marking its foray into the power sector.

"This is an area we have been trying to enter into. We have floated a new company ...," Hiranandani Constructions' Managing Director Niranjan Hiranandani told PTI.

Hiranandani said that the new unit, Hindustan Electricity Generation Company (HEGC), aims to have 2,500 MW generation capacity which would be built within the next four years.

"The total investment in the plant will be in excess of Rs 10,000 crore," Hiranandani said, adding that the project will be funded through debt and equity at a 3:1 ratio.

HEGC may also look at raising funds through private placement of shares as well, he said.

"However, we are yet to come out with a real picture of the fund requirement. We have given the job to a consultancy firm, which will help us to get the clearer picture of the envisaged project. The amount we would be required to raise through private equity and all other nitty-gritty would become clearer when we get their report," he said.

Around 15 per cent of the power generated from the plant would be reserved for captive use and the remaining would sold to the national grid, Hiranandani said.

"We have got land and environmental clearances. The EPC bids will be launched soon. Work on the project is likely to start in September this year and the first turbine with 1,000 MW capacity will go on stream in over three years from now," he said. 

Srikanth Nyshadham +91-98665-06729
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