Tiana Power Projects, the flagship company of the Tiana Group, today said it has entered into a technical collaboration with Kepco E&C of South Korea for erection project consultancy for gas power projects in India.
The joint venture agreement was signed by the Founder of the Tiana Group, A M Nathani, and Kepco E&C's Vice-President, Plant Division, Ahn Kwang Jin.
Kepco E&C has received an initial order to the tune of Rs 5,500-crore.
Tiana Power Projects is setting up four power projects -- two in Maharashtra, one in Cochin and one in Andhra Pradesh.
"The two projects in Maharashtra are located at Anjarle and Adur-Budhalkand, both in Ratnagiri district, of capacities of 1,600 Mw and 2,400 Mw, respectively," Tiana Power's Founder, A M Nathani, told reporters here.
The power projects in Cochin and Andhra Pradesh are both of 1,360 Mw each. All these four projects are expected to be completed in a period of 3-4-years from now. The total cost involved in these projects will be Rs 18,000-crore, which will be met entirely through internal accruals without any outside borrowings, Nathani said.
The power generated will be entirely sold to the respective state governments at Rs 1.50 per unit, Nathani said, adding that the company will save about 35% of power manufacturing cost due to non-debt and non-equity borrowings.
The state governments are expected to distribute power at Rs 2.25 per unit as compared to the present average cost of Rs 4.50 per unit charged by various state governments.
The company's long-term plans include setting up 90 power projects across the country. The Indian government has accorded an in-principle approval to Tiana Group's plan to set up 90 power projects in the thermal, hydel, solar, wind and nuclear power segments.
The Group is eyeing a 10,000 Mw target of power generation in 3-4 years, Nathani said.
The company has an existing wind power project in Kutch (Gujarat) of 100 Mw power, which is expected to be on-stream in May 2011. On completion, the project will be run by Enercon (India) and supply power to the Gujarat government, Tiana Power's Chairman, Jayantilal Lalchand Shah, said.
The company has two more wind power projects under its belt at Jaisalmer (Rajasthan) and Satara (Karad) in Maharashtra.
The power generation will be 25 Mw at each place at a cost of Rs 142-crore in each state. These projects are likely to be completed by end-2011, Shah said.