Shapoorji Pallonji & Co (SPC) is investing Rs 805 crore in two liquid fuel-based integrated power plants in Madhya Pradesh and Tamil Nadu.
The plants will have a capacity of 120 mw and 100 mw, M S Hingorani, advisor, diversification of SPC, said.
SPC is the largest single shareholder of Tata Sons with an 18 per cent stake. The group had led a low profile existence for long, despite constructing several landmark buildings in Mumbai.
The original MoU for the Indore project had been signed by Wartsila Diesel and Benarasi House, the sole distributors of Wartsila in India.
However, a subsequent MoU saw SPC step into the picture and undertake the project through a new joint venture, SP Power Company. The other joint venture partners are Wartsila Diesel and Benarasi House with SP Power holding the majority stake.
The final techno-economic clearance of this project is expected in April and work is expected to begin in November with the project expected to be commissioned in 18 months.
The MP project is expected to cost Rs 425 crore of which Rs 127 crore will be raised as equity and the rest debt.
The second project in Tamil Nadu is to be undertaken by a company called Samal Patti Power Company floated by SPC group company, South India Viscose.
Wartsila is the EPC contractor for the project. The 100 mw plant is expected to cost about Rs 380 crore of which Rs 110 crore will be raised as equity. The land acquisition of both the projects are nearly complete, environmental clearances for the MP project has already been received.
More than a 100 MoUs for IPP projects had been signed as early as 1995, but the government delay in finalising the fuel linkages had held up the projects.
Some of SPC major buildings include the Taj Mahal hotel, Old Oberoi hotel, SBI headquarters, Mafatlal Centre, RBI building, HongKong Bank building, New India Assurance building at Fountain amongst others.
The company has constructed the LIC building in Delhi, the VSNL building in Calcutta, and has undertaken a number of projects abroad as well. Today however 65 per cent of the companys turnover comes from industrial construction.
The groups client list includes such names as the Tatas, Goenkas, Mafatlals, Essar, Siemens, Glaxo, M&M, AV Birla group, Dept of Atomic Energy, ILFS, LIC, Citibank, RBI, VSNL, MRPL and Hudco.
