Vedanta revives Rs 10k cr power project in Punjab

Global metal and mining major Vedanta Resources has decided to revive its about Rs 10,000-crore independent power project in Punjab, which it had put on hold last year.

"We have taken a decision to revive the 1,980 Mw Talwandi Sabu project in Punjab. We will soon take a call on reviving 1,980 Mw power project planned in Orissa," Vedanta Resources Vice Chairman Naveen Agarwal said during an analyst call conference last week.

NRI billionaire Anil Agarwal led company put the Punjab power project on hold after global metal prices crashed by over 50 per cent, which pushed the company to reduce the capex for next four years by about $5 billion.

The metal and mining major is undertaking its commercial and captive power projects in India under the aegis of Sterlite Energy, which last week filed a draft prospectus with Sebi for an initial public offer to raise up to Rs 5,100 crore from the capital market.

The subsidiary of Vedanta's flagship firm Sterlite Industries intends to use the net proceeds to partially finance the construction and development of the Talwandi project. The proceeds will also be used to partly fund the 2,400 Mw upcoming power plant in Orissa.

Sterlite Energy plans to set up power projects with total capacity of 11,000 Mw in the next few years.