BGR Energy to set up Rs 6,287 cr power project in Orissa
Press Trust of India / Mumbai Apr 09, 2010, 14:24 IST
Power equipment supplier BGR Energy Systems today said it has entered into an agreement with the Orissa government for setting up a 1,320-MW power project at an investment of Rs 6,287 crore.
The company has signed a memorandum of understanding (MoU) with Orissa government for setting up a 1,320 MW independent power producer at Bhapur in Nayagarh district of the state at an investment of about Rs 6,287 crore, BGR Energy Systems said in a filing to Bombay Stock Exchange (BSE).
"We are confident that our project will bring in all round integrated development in the region of Nayagarh district," BGR Energy Systems Chairman and Managing Director B G Raghupathy said.
The MoU was signed by chairman and managing director BGR Energy Systems B G Raghupathy and Energy Secretary P K Jena on behalf of the Orissa government.
The proposed project will be implemented by a special purpose vehicle, it said.
As per the MoU the state government would assist the project with land acquisition, water, mandatory clearances, and would also facilitate allotment of captive coal blocks to be utilised for the it.
Besides, the state government is entitled to purchase 12-14 per cent power generated from the plant at a variable cost as determined by the Orissa Electricity Regulatory Commission.
The plant is scheduled to be commissioned in 54 months and is expected to provide direct employment to more than 1,200 people, it added.
Shares of BGR Energy Systems were trading at Rs 547.30 on the BSE, up 1.25 per cent from previous close.
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