DPSC Ltd chalks out Rs 25,000-cr capex for expansion

Company owns power plant with installed capacity of 77.4 MW in West Bengal

DPSC Ltd, as a power utility arm of SREI Infra Finance Group, is planning to expand its presence through setting up new power generation plants outside West Bengal at an investment of Rs 25,000 crore.

The company currently owns a power plant with an installed capacity of 77.4 MW in West Bengal.

“Now, we are planning to add another 4,362 MW power generation capacity in the states like Rajasthan, Bihar, Gujarat and Madhya Pradesh in near future at an accumulative investment of Rs 25,000 crore," said Hemant Kanoria, chairman, DPSC Ltd.

“Even though power sector is not doing very well at this time of moment, we are hopeful that this sector has huge opportunity for a developing country like India. The country has huge power deficit and it offers new opportunities for private players,” Kanoria added.

DPSC, which came under IPCL fold after divestment by Andrew Yule in 2009-10, will add 450 MW of thermal power in its books at Raghunathpur in West Bengal. Another 3,750 MW of thermal power would be added by IPCL.

DPSC Chairman Hemant Kanoria said the DPSC-IPCL combine has embarked on major expansion after the takeover and new 1,320-MW units would be set up in Bihar and Madhya Pradesh, besides a 450-MW unit in Haldia.

Kanoria said the company will participate in bidding for a few distribution licenses which were expected shortly.

DPSC will also invest another Rs 1,450 crore in creating and improving the existing distribution infrastructure.

The company is planning to meet the proposed capex through debt (70%) and equity (30%).