The project cost of the power plant will come to about Rs 11 crore, of which Rs 9 crore will come as loan from the Industrial Development Bank of India (IDBI), with the balance Rs 2 crore coming from internal accruals. S Y Rajagopalan, director and secretary of Electrosteel Castings, said the machinery and equipment of the plant are already in place and the plant will be commissioned in February 1997.
Expenses will be reduced with implementation of the captive power plant. The cost of producing electricity here will come to Rs 1.60 per unit. Purchasing electricity from CESC comes to around Rs 3.30 per unit, and this will become Rs 3.80 from November, said Rajagopalan.
The plant will have a capacity of 3.5 mega watts, just sufficient for meeting the requirement for the miini blast furnace. It will also serve the purpose of a pollution control mechanism.
In its prospects for a rights issue in January
