Rattha group enters power sector

Chennai-based diversified Rattha Group is setting up two power plants in Tamil Nadu and Andhra Pradesh, marking its entry into the power sector .

Group chairman HS Rattha said the company was setting up a 450-mega watt each in Tuticorin, Tamil Nadu, and Nalgonda district in Andhra Pradesh. According to industry sources, to set up one mega watt coal-based power plant it requires Rs 4.5 crore and the two projects, together will attract an investment of around Rs 4,050 crore.

Rattha, a first time entrepreneur, said the company had roped in a Malaysian firm to be partner. While declining to share the name and other information about the tie-up, he said, “the agreement is expected to be signed in the next 10 days, they (the Malaysian firm) will take 49 per cent stake in the special purpose vehicle.”

The group is also scouting for a new partner to set up five-star service properties. It had tied up with Ascott and both the partners have set up a project at Chennai. “In the next five years, we are planning to set up another six such projects, for which we are scouting for partners,” he said, while declining to discuss further.

In 2006, Rattha Group partnered with the Singapore based Ascott Group, a serviced residence provider in Asia Pacific, Europe and West Asia regions.