Business Daily from THE HINDU group of publications
Sunday, Jul 23, 2006
Corporate - New Projects
IFFCO plans second 1,000 MW power plant
Working it out
Project to cost around Rs 4,000 crore and a detailed project report is under preparation, according to the general manager of Iffco's Kalol unit.
Kalol (Gujarat) , July 22
Indian Farmers' Fertiliser Co-operative Ltd (IFFCO) is planning to emerge as a formidable player in the business of power generation and is to set up a 1,000 MW, gas-based power plant at Kalol in Gujarat next to its urea plant.
This would be the second power project of IFFCO, which is already setting up a 1,000 MW coal-based plant in a joint venture with the Chhattisgarh State Electricity Board (CSEB).
According to the arrangements, the CSEB will buy up to 90 per cent of power generated from the Chhattisgarh plant.
The tie-ups for the Kalol unit would be taken up after the fuel supplies were assured by the State Government, officials said.
The General Manager of IFFCO'S Kalol unit, Mr A.K. Sinha, told Business Line that the project could cost around Rs 4,000 crore and adetailed project report was currently under preparation.
Eco impact studies
"The preliminary feasibility study is already over and currently environmental impact studies are being carried out," he said.
The Rapid Environment Impact Assessment (REIA) and the Comprehensive Environment Impact Assessment (CEIA) studies are being done by a team of senior engineers right now to determine how the local flora and fauna, air and water would be affected due to this mega power plant, he said.
Mr Sinha also pointed out that the fate of the project essentially hinges on the availability of gas from the Krishna Godavari basin.
"The Gujarat State Petroleum Corporation Ltd (GSPCL) will be supplying the gas but the confirmation for supply of the required volume of gas is yet to come.
"Once the State Government assures the fuel supply, the project will move forward," he said.
Meanwhile, the project work for the co-operative's Chhattisgarh power plant has already started. With an estimated cost of around Rs 4,500 crore, the plant is being set up with a 70:30 debt equity ratio.
On the equity side, IFFCO is holding 74 per cent stake and the CSEB is holding the remaining 24 per cent in the joint venture company Iffco Chhattisgarh Power Ltd (ICPL).
The financial closure of the Chhattisgarh project is expected by December this year and it is is expected to go on stream by 2010.
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