Hyderabad: My Home Group, a Hyderabad business house with interests in cement, property development and infrastructure, plans to set up a coal-fired power plant with capacity of up to 1,200MW, at a cost of about Rs4,000 crore, near the Gangavaram port at Visakhapatnam.
“We have applied for a coal block in Orissa and a railway line for connectivity to our proposed power project,” said Roy Chowdhury, the group’s director in charge of the power business, adding importing coal, too, was an option. The detailed project report, which forms the basis of power purchase agreements for the plant, will be completed in about three months, he said.
An analyst said access to coal is critical for My Home’s foray into power. “The cost of power generation varies largely from a company having access to captive coal blocks and that which depends on imported coal. The financial viability of a power project depends on its success in obtaining coal blocks,” said Nitin A. Khandkar, senior vice-president of research at Mumbai-based Keynote Capitals Ltd.
My Home is currently evaluating three configurations for the power station: set up two units of 300MW each first and follow it up with another two of 300MW in the second phase; erect two units of 500MW; or go in for two power generating stations of 600MW each.
The project is being structured as a ‘merchant plant’, which will allow My Home to sell power to power trading firms and not just to state-run utilities, Chowdhury said. The project will be funded by debt and equity in a 2:1 ratio.
Chowdhury said the firm expects to begin plant construction by around July next year. “We expect the project to take off in 32-36 months from then if it involves units of 300MW and 42-48 months in case of units of 500-600MW,” he said.