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| Patel Eng forays into power, to set up plants in Arunachal, TN |
| Press Trust Of India / Mumbai Sep 07, 2009, 01:50 IST |
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Infrastructure construction major, Patel Engineering, is planning a major foray into power by setting up power projects in Arunachal Pradesh and Tamil Nadu over the next three-years, a top company official said.
The company has set up a wholly-owned subsidiary, Patel Energy, which will run the business, the official said.
“We plan to set up a hydro and thermal power plant in Arunachal Pradesh and Tamil Nadu, respectively,” Patel Engineering’s Managing Director Rupen Patel told PTI here.
Patel Energy plans to set up a 120 Mw hydro-power project in Arunachal Pradesh at an investment of Rs 800 crore.
The debt-equity ratio for the project would be 70:30 with the company bringing in Rs 210 crore, while the balance would be tied-up through debt. “We hope to achieve financial closure by Q1 FY 11,” Patel said.
The company has already obtained land and environmental clearances and only one more approval needs to be received, he said.
The company intends to tie-up firm sales for 60 per cent of the power generated from its Arunachal hydro plant on a merchant basis, while the remaining 40 per cent will be sold commercially, Patel said.
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