Iffco plans IPO for Chhattisgarh power project

Indian Farmers Fertiliser Cooperative Ltd (Iffco) is planning to launch an initial public offering (IPO) for its Chhattisgarh power project to mop up Rs 600 crore.

The project, Iffco Chhattisgarh Power Ltd (ICPL), which is a joint venture between Iffco and Chhattisgarh State Electricity Board (CSEB), is expected to start production by 2015. The financial closure is expected by December 2011.

“We will approach the regulators and others to get the necessary approvals. We are keen to go (public) as early as possible,” said U S Awasthi, managing director while announcing the company’s financial results today.

The 1,320 Mw coal-based power plant, which is coming up at Salka village in the Sarguja district of Chhattisgarh, recently received the forest clearances from the environment ministry. Iffco had decided to set up the pit head coal-based thermal power project under the government’s ultra mega power project. It has been financed with a debt-equity ratio of 70:30.

The plant will have its captive coal mine at Tara coal block from where coal would be brought to the plant through a conveyor. ICPL has also formed a joint venture with Chhattisgarh Mineral Development Corporation to develop the coal block.

Iffco registered over 77 per cent growth in its profit after tax at Rs 173.65 crore during 2010-11 year-on-year. Profit before tax was up 80 per cent to Rs 1,025 crore. It also achieved highest ever sales of fertilisers of 125,000 tonnes and sales turnover of Rs 21,195 crore in the last financial year.Iffco’s phosphoric acid project, which is a joint venture with Jordan Phosphate Mines Co Ltd, is expected to begin production by middle of 2013.

Jordan India Fertiliser Company has already achieved financial closure.