| Vadodara based state enterprise Gujarat Alkalies and Chemicals Ltd (GACL) plans to invest Rs 60 crore in Gujarat Industries Power Co's (GIPCL) proposed power plant in Mangrol taluka of Surat.
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| GACL has also expressed its willingness to consider the option of investing more funds if GIPCL agrees.
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| "We have committed to participate in setting up a 250 MW power plant at Mangrol in Surat district. We plan to invest Rs 60 crore in upcoming lignite based power plant of GIPCL in Surat district. We have also expressed that GACL is open to pump in more funds if GIPCL requires," said P K Taneja, managing director, GACL.
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| GIPCL is in process of increasing its capacity to 500 MW at Surat Lignite Power Plant at an estimated cost of about Rs 1,000 crore. Meanwhile, it is learnt that GIPCL has completed the pre-bidding procedures for the proposed power plant.
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| Commenting on the resources of GACL, Taneja said, "GACL has funds to invest outside of the company. This year, we are expecting to generate cash surplus of Rs 250 crore. The market for caustic soda has grown especially in last three years. Similarly, demand for hydrogen peroxide has also gone up in view of booming textile and paper industries."
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| GACL also has a captive power plant with capacity of 90 MW at Dahej. At present, GACL utilises about 60 per cent of power generation for its own usage and sells rest to Gujarat Urja Vikas Nigam, formerly a part of GEB.
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| However, Taneja denied GACL's intentions to venture into power sector actively. "GACL has its presence indirectly through captive power plant and share holding in GIPCL. The company is keen to have a stake in power sector as power is an important input for us," said Taneja.
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| GIPCL is promoted by the Gujarat Electricity Board (GEB), Gujarat State Fertilizers & Chemicals Ltd (GSFC), GACL and Petrofils Co-operatives. GACL holds 12.87 per cent share in GIPCL. |
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