Srei-led consortium plans 400 MW power plant

Srei-led consortium plans 400 MW power plant

Kolkata: “A consortium led by Srei Infrastructure Finance Ltd plans to set up a 400-MW power plant in Haldia, West Bengal, for an estimated cost of Rs1,800-2,000 crore," Hemant Kanoria, chairman, Srei said.

“We already have the land in possession and the total investment for the project is estimated at Rs1,800-2,000 crore," he said on Wednesday.

“India Power Corp Ltd (IPCL) is a 50:50 consortium of Srei and Bhaskar Silicon Pvt Ltd and is operational since 2006," he said.

IPCL already has a generation capacity of 40 MW and last week it added another 40 MW by buying out 57.17% stake in Andrew Yule group firm DPSC Ltd for Rs172 crore.

“Out of the 400 MW, 200 MW power would be supplied to the West Bengal State Electricity Board and the remaining would be used by Bhaskar Silicon Ltd," Jyoti Poddar, director, Bhaskar Silicon Pvt Ltd. said adding: “IPCL is in the process of identifying the engineering procurement and construction (EPC) contractors, he added."

“Around 70% of the project cost would be funded through debt," he said.

“Remaining part will be equity, which would be equally shared by both the consortium partners," he said.

“We are in talks with various financial institutions and we expect to attain the financial closure in another two months time," he said.

“The company has started work at the site and total project is expected to be completed in 24 months," Poddar added.

Shares of Srei ended down 2.83% at Rs75.50 in the Mumbai market which rose 0.4%.