City-based power generation and transmission major CESC has signed a memorandum of understanding with the Bihar government for setting up of a 2,000 mega watt (MW) thermal power plant at an investment of Rs.100 billion in Bhagalpur, a top company official said here Wednesday.
Company vice chairman Sanjiv Goenka said a 660-mw unit would be established in the first phase by 2012-13, and another two units of 660-MW each will be added in the second phase. The expense for the first phase would be Rs.32.5 billion.
"We began the initiative six months back by opening a new power company, Nalanda Power Company, which is a 100 percent subsidiary of CESC," Goenka told reporters after the company's annual general meeting.
Asked about coal resources, he said: "We have applied for captive as also linkages. We are still not sure what will be sanctioned. The minister of state for coal (Santosh Bagrodia) has assured us there will be no problem about the supplies."
The plant would supply power mainly to state capital Patna, which has a peak demand of 360 MW. "So, we want to take the distribution rights for Patna," he said.
The project, spread over 400 acres, will be funded through a 70:30 debt-equity ratio. The equity would come through internal accruals.
On the company's proposed 2,000 MW power project in Haldia of East Midnapore district, of West Bengal, Goenka said the CESC was now in possession of 241 acres.
About 334 acres were needed in the first phase. "We are awaiting environmental clearance, and hope to get it soon".
For the Haldia project, the CESC has finalised a 3-million-ton annual coal linkage with Mahanadi Coalfields Ltd There will be three 200-MW units in the first phase at an investment of Rs.25 billion.
The second phase would be completed by the second quarter of 2011-12, he added.
Source: IANS 31/July/2008
