NCC picks up 55% stake in Nelcast Energy

City-based Nagarjuna Construction Company Limited, through its subsidiary NCC Power Projects Limited, has acquired a 55 per cent equity stake in Chennai-based Nelcast Energy Corporation Limited (NECL) for an undisclosed sum.

NECL, an associate company of iron castings manufacturer Nelcast Limited, is currently developing a 1,320-Mw thermal power project at Krishnaptnam in Andhra Pradesh.

To be fed by imported coal, the project is estimated to cost Rs 6,822 crore. The power generated from the plant will be evacuated at 400 kV voltage level to the existing substation of powergrid at Krishnaptnam.

NECL has acquired the project land and also secured all the requisite approvals from the authorities concerned in relation to the project, Nagarjuna Construction said in a filing to the Bombay Stock Exchange on Tuesday. NCC officials were unavailable for a comment.

Nagarjuna Construction’s scrip ended the trade at Rs 115.65 on the BSE on Tuesday, up 2.53 per cent over the previous close of Rs112.80.