DPSC-IPCL to invest Rs 26,450 cr in power sector by 2015

Power generation and distribution group, India Power Corporation Limited (IPCL) and DPSC Ltd will be investing Rs 26,450 crore by 2015 in the power sector across India.

“IPCL and DPSC have an installed capacity of power generation of about 77.4 Mw, and will add another 4362 Mw with an investment of Rs 25,000 crore by March, 2015 in Rajasthan, West Bengal, Bihar, Gujarat and Madhya Pradesh,” DPSC chairman Hemant Kanoria said.

“In power transmission and distribution segment, DPSC will investment around Rs 1,450 crore,” he said.

Last year IPCL, a consortium promoted by Srei Infrastructure Finance and Bhaskar Silicon, took over DPSC, a power generation and distribution company under Andrew Yule group.

India Power Corporation (Haldia) Limited, a SPV of IPCL has been incorporated for establishing 450 Mw (3x150 MW) coal-based captive thermal power plant at Haldia, West Bengal which will see an ivestment of Rs 2,400 crore. While Haldia plant is expected to be commissioned within 2013, Kanoria said, the 540 MW Raghunathpur coal-fired power plant valued Rs 32,00 crore is likely to take one more year to be implemented.

“At Haldia we have more than 200 acres of land. Construction works are going on there. And at Raghunathpur, we already have 155 acres of reqired 220-230 acres land.We are open to private purchase of more land,” Kanoria said. Bharat Heavy Electricals Ltd (BHEL) has been awarded contract for both the plants.

Apart from West Bengal, 1320 MW plant in Bihar, 1320 MW plant in Gujarat and 660 MW plant in Madhya Pradesh are at various stages and the group has applied the Centre coal linkage. Moreover, in Rajasthan, 60 MW wind power plant is under implementation and expected to be commissioned by March, 2012.

On distribution network, DPSC will invest another Rs 1,450 crore to set up 220 KV and 400 KV stations within the licensed area of 620 sq km in the industrial belts of West Bengal and Jharkhand. Kanoria also said the company will participate in bidding for a few distribution licenses which were expected shortly.

Speaking on the funding of the projects, he said, “Various options are available. Internal accruals will take place. We will also tap private equity market.”