Monnet Power Company, an arm of Monnet Ispat and Energy, plans to invest about Rs 3,300 crore for increasing power generation capacity of its plant being built at Angul in Orissa, a senior official of the company said today.
"Board of Directors of the company have approved the setting up of additional unit of 660 Mw power plant at Angul where 1,050 Mw (2x525 Mw) power plant is under construction," Executive Vice Chairman Sandeep Jajodia told PTI.
Surplus coal is available from the mines allotted to the project, he said.
The first phase of 525 Mw will be commissioned by June 2012 and the next by September in the same year.
Approximately, an expenditure of Rs 5 crore is incurred for generating 1 Mw of power.
The power project at Angul is based on 100% captive coal, so the cost of electricity produced from the plant would be much lower.
Funds for the project have been tied-up, Monnet Power has signed a loan agreement for approximately Rs 3,800 crore with a consortium of lenders led by Infrastructure Development Finance Company (IDFC).
The company plans to have a generation capacity of 5,000 Mw of power by 2015.
It also plans to set up two thermal power projects in Gujarat and two solar power projects, one each in Rajasthan and Karnataka, the size of which are not known. It may sell shares in an initial public offering to fund these projects.
Private equity firm Blackstone Group picked up 12.5% in Monnet Power for Rs 275 crore in July, last year.
The parent company Monnet Ispat and Energy today reported marginal 3.19% increase in its net profit at Rs 70.18% for the quarter ended December 31, 2010.