Bhoruka seeks dedicated coal supply for power projects

The Bangalore-based Rs 150 crore Bhoruka Group, which is into power generation, real estate and specialty gases production, is seeking dedicated coal supplies for its power projects planned in Karnataka. It is close to acquiring a coal mining lease in Indonesia.

The company is looking at reserves in excess of 10 million tonnes to produce 500,000 tonnes coal annually.

"We have inspected a few locations in Indonesia. We intend to complete the process in the next three months following which the coal mining lease will be awarded to us," Bhoruka Group Chairman S N Agarwal told Business Standard.

The company is working out the investment required to procure the lease. Its overseas subsidiary, Bhoruka Overseas Investment Ltd, based in Singapore, will finance the acquisition of the coal mines.

"We can finalise the investment only after the location is selected. We will not deploy any machinery or human resources. We will go in for contract mining with key personnel from Bhoruka monitoring the project. We have to pay a certain royalty to the Indonesian government also," he added.

Basically, a company, which specialises in wind power and mini hydel projects, Bhoruka is foraying into thermal power projects with the demand for energy increasing. It has bid for a 300 Mw thermal power project proposed to come up in coastal Karnataka close to Goa.

"We have worked on the project very hard and expect the Karnataka government to award us the bid. It may be finalised in a few months," he added.

The company plans to set up a second 300 Mw thermal power plant next to the proposed project site. "We want to scale up the power production to 600 Mw if the first project is awarded to us," said Agarwal.

Bhoruka Group operates power projects (mini hydel and wind-based in excess of 100 Mw) in Karnataka and Rajasthan through its subsidiary Bhoruka Power. It has lined up Rs 580 crore capital expenditure over the next two years to double power production to 200 Mw.

Bhoruka Group is acquiring the coal mining lease to also enter the trading business. "Coal trading is gaining momentum with India increasing its consumption significantly. We see opportunity for growth in this line of business," Agarwal pointed out.