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| OPGC financial closure for 1200 Mw Ib plant expansion by December |
| BS Reporter / Kolkata/ Bhubaneswar Mar 02, 2009, 00:03 IST |
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The Orissa Power Generation Corporation (OPGC), a joint venture between the Orissa government and AES, hopes to achieve financial closure for the proposed 1200 Mw expansion, comprising establishment of two units (unit-3 &4) of 600 Mw each, at the company’s Ib valley thermal power complex in Jharsuguda district by December 2009.
Various project associated activities including obtaining and renewal of different clearances are progressing well and the development of two captive coal blocks are being taken up. The total investment including the development of coal blocks is estimated at about Rs 7,500 crore, sources said.
OPGC will have equity of 20 percent in the project which will come from the dividend of the company. The remaining 80 percent is proposed to be mobilised in the form of loan. The company is in discussion with the Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and 2 to 3 commercial banks in this regard.
The plan for starting the mining of coal in Manoharpur coal block, about 35 kms away from IB Thermal has been approved and the land acquisition is in progress. Out of 2000 acres of land required for the project, 1000 acres are already available with the company and acquisition of additional 1000 acres of land is in progress.
The JV company has been performing well for past couple of years with exceptional safety and environmental records. It has also bagged a number of state and national level awards for performance, safety and environment. This unit recently completed 5 years of accident free operation which is a landmark achievement in the power industry, sources added.
The board of the company in its meeting recently approved an interim dividend of 21 percent for 2008-09 involving an amount of Rs 103 crore. The Orissa government, being 51 percent stakeholder in the JV company, has received Rs 52.5 crore as interim dividend.
P K Jena, energy secretary and the chairman, OPGC presented a cheque of Rs 52.5 crore to the chief minister Naveen Patnaik in the state secretariat on Saturday. With the payment of Rs 52.5 crore dividend, the total dividend paid by the company to the state government has reached about Rs 614 crore.
Vivekananda Biswal, managing director, OPGC and principal secretary to the chief minister Bijay K Patnaik were present during the occasion.
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