NTPC, CIL to float special purpose vehicle

NTPC, CIL to float special purpose vehicle
PTI
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First Published: Thu, Dec 06 2007. 01 25 PM IST
Updated: Thu, Dec 06 2007. 01 25 PM IST
New Delhi: NTPC Limited and Coal India Limited (CIL) will sign an agreement soon to float a joint venture Special Purpose Vehicle (SPV) to build two power plants of 1500 mw and develop two coal mines in Jharkhand at an estimated cost of Rs8,000 crore.
“NTPC and CIL will sign a Memorandum of Understanding (MoU) to float a SPV to build two integrated power plants at a cost of Rs7,500 crore and develop two coal mines in Jharkhand at an estimated cost of Rs500 crore. The draft MoU will be given final shape in the coming days,” said a official at the ministry of coal.
He said, in the equity stake of both the companies would be on a 50:50 basis and the power produced from these plants would be sold commercially, mostly through Power Purchase Agreements (PPAs).
“NTPC and CIL have been allocated two coal mines-Brahmini and Chichro Patrimal, which together have a thermal coal reserves to the tune of a whopping 2000 million tonnes and the reserves are expected to last for at least 30 years,” he said.
He, however, did not say whether the proposed SPV would be listed but pointed out that it would be decided in due course of time.
“We think that resources are not a problem and they can be generated as and when required. This is a sort of forward integration for CIL and rightfully so because it has the requisite expertise to mine the coal from these blocks,” he pointed out.
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First Published: Thu, Dec 06 2007. 01 25 PM IST