New
Delhi: Monnet Ispat and Energy is mulling setting up a 660 MW thermal power
plant at Angul in Odisha at an investment of around Rs 4,000 crore.
Once
set up, this facility will take the company's generation capacity to nearly
2,000 MW.
"We
are implementing a 1,050 MW power project at Angul in Odisha. This should get
up and running by June-September, 2013. We plan 660 MW at the same site. The
idea is developing now. We are talking to Odisha government," Monnet Ispat
and
Energy's
Chairman and Managing Director Sandeep Jajodia said.
He
further said the project entails an investment of Rs 4,000 crore, going by the
calculation of Rs 6 crore per MW.
Jajodia,
however, made it clear that the project is now at a conceptual stage and it has
to get all the clearances for setting up the plant.
At
the same time, he said the proposed power project would be financed with a
debt-equity ratio of 70:30 and the company may dilute some "minimal"
equity at the project level at an appropriate time.
"Yes,
if we have to fund that project; some amount of equity dilution will happen;
but it would be very minimal, because our 1,050 project will start generating
cash," he said when asked if the company plans to raise some equity for
the project.
The
dilution, however, is unlikely to happen in a year's time, he added.
Jajodia
said that the company has also to look for a coal mine to fire the project as
coal from the Mandakini mine in Odisha would be consumed by the 1,050 MW plant.
Monnet
Ispat and Energy generates 270 MW power now, but that is used mostly by its
steel plant.
The
company, he said, also plans to foray into renewable sector for generating
power.
"It
is only sensible and logical for us to generate power from renewable
sources," he said without divulging much.
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