Monnet to sell stake in power subsidiary to strategic partner

Monnet Ispat and Energy (MIEL) is looking to sell some stake in its power generation subsidiary to fuel expansion plans and future growth, company's Chairman and Managing Director Sandeep Jajodia said.
MIEL, which holds 87.5 per cent stake in Monnet Power, is currently engaged in preliminary discussions with five-six power utilities, including a foreign firm, for strategic part-stake sale.
"We are looking for a strategic partner in Monnet Power. Five-six companies have evinced interest. One of them is a foreign firm. We are yet to decide on the percentage of stake dilution," Jajodia told PTI.
Rapid capacity expansion of Monnet Power, now setting up a 1,050 MW coal-based power plant at Angul in Odisha, is the primary objective for inducting the partner into the venture. There are some commercial reasons as well, he said without elaborating.

Monnet Power is also adding another 660 MW power plant at the same site. The company has received the terms of reference relating to the environmental clearance for the additional capacity from Ministry of Environment and Forests, it said on its website.
Jajodia, however, said that company would not sell stake in Orissa Sponge in which it has 35.17 per cent stake. Sponge iron is used in iron and steel industry as a substitute for scrap in induction and electrical arc furnaces.
Shares of MIEL closed up by 2.98 per cent at 65.60 on the BSE today.