JR Powergen hopes to achieve financial closure by December
JR Powergen Private Ltd, the company promoted by the Hyderabad-based KSK Group, hopes to complete the financial closure for its 1980 Mw power project in Orissa by the end of the current year.
As a measure in that direction,the company would expedite the process of land acquisition and obtaining the environmental clearance, a top executive of the company said.
“We would focus on acquiring a significant portion of the land and the environmental clearance for our Orissa project to attain financial closure by the end of 2010 ”, S Kishore, director, KSK Energy Ventures Ltd told Business Standard.
The company signed a Memorandum of Understanding (MoU) with the Orissa government on last Friday for setting up a 1980 Mw Independent Power Producer (IPP) at Kishorenagar near Angul.
It requires about 1780 acres of land for the proposed project and the company is in the process of applying to the state owned Industrial Infrastructure Development Corporation (Idco) for initiating the land acquisition process.
Meanwhile, the company has identified a patch of 1000 acres near Kishorenagar to locate its Rs 7988-crore thermal power project. Talks would be held with the local people to get their consent for land acquisition.
JR Powergen has already signed a coal supply agreement with the Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC). It would be supplied coal for a period of 25 years from the Naini coal block near Chhendipada.
This coal block has been alloted to PIPDIC and Gujarat Mineral Development Corporation (GMDC) on a 50:50 basis. JR Powergen would source the entire share of PIPDIC.
If every thing goes as per schedule, the company hopes to float EPC (engineering, procurement and construction) tender for the project by June this year. The envisaged investment in the project is Rs 7988 crore with the debt-equity ratio being 75:25.
It plans to focus on the development of human resources in the area and has chalked out plans in this regard. The company intends to upgrade skills of the local people through appropriate training.
JR Powergen would adopt one ITI functioning in the project area and if not available, would set up a new ITI for skill development.“There is huge scope for employing people in works excavation, fencing, fabrication and other preliminary works of the project. We intend either to adopt or set up a new ITI in the areas”, Kishore added.