IDFC Projects may exit Dheeru Powergen

IDFC Projects, the infrastructure development subsidiary of IDFC, is looking to exit from Dheeru Powergen, a power project it took over around eight months earlier. The project is currently on the drawing boards, for a 1,050 Mw generation unit in Korba, Chhattisgarh.

IDFC might go for an open tender to sell the power project, which it now wants to exit, albeit at a good return over the investment. According to sources, IDFC Projects bought 74 per cent stake in the company for Rs 147 crore, earlier this year. Malaysian construction company Ranhill Berhad owns the rest of the stake.

According to sources, GMR Infra, Lanco Infratech, Adani Power, and US-based AES are among those known to have shown initial interest in bidding for the project. In response to an e-mailed query, IDFC said they did not respond to market speculation as a policy. Lanco Infratech said they would be looking at the project, since they already had a presence in Chhattisgargh. GMR and Adani did not respond, while contact could not be made with AES.

Though there could be many suitors, sources say the project might not command a premium. "They are expecting a premium over their investment. However, the project has not progressed much since they have taken it over," said an official who planned to bid.

The project faced much delay since its inception by Ranhill Berhad, around six years before. It was originally envisaged as a 600-Mw one, with two units of 300 Mw each. The capacity plan was later increased to 1,000 Mw. Then, they searched for a partner and brought in IDFC Projects.

The project has a coal linkage with South Eastern Coalfield’s mines and will be transported through railway wagons to Korba, which already has a railway station catering to other power plants in the area.

"The project has an environment clearance and water supplies have been cleared, too, but the new acquirer of the project will have to start land acquisition from scratch," said a source close to the development.