Mumbai: Hyderabad-based power producer Suryachakra Power said on 8 August it will set up a 1,200MW thermal power project in Orissa and has tied up with the state government for the purpose.
The company has signed an expression of interest (EoI) with Tata Power Trading Company Ltd (TPTCL) for supply of coal for 10 years. A separate power purchase agreement has also been signed with TPTCL as it has expressed interest in buying the generated power.
“The company will create a 1,200MW (4x300 MW) thermal power project in Orissa. In the first phase, it will install 300MW. The set up cost for the first phase is estimated at $300 million,” Suryachakra Power informed the Bombay Stock Exchange (BSE).
Shares of the company were last trading at Rs19.95, up 0.5% on the BSE.
The company said it is in talks with the Orissa government for getting approvals for land allotment and water supply and permissions excluding coal linkage for the proposed project.
Besides, Suryachakra Power has entered into an MoU with New Delhi-based Desein Pvt Ltd for technical consultancy and supervision of the project.
“The company has also tied up with New Delhi’s Indure Pvt Ltd for developing a thermal mega power project of 1,000-1,200MW capacity in Orissa. Indure is well versed with manufacture of equipment and EPC contracts,” the filing added.
The company last month entered the bourses with over 7.66 crore equity shares at an issue price of Rs20 each.
The firm has engaged IL&FS Infrastructure Development Corporation Ltd as project development agency.