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State-run Gujarat Industries Power Company Ltd (GIPCL) has issued letter of intent to Lanco Infratech Ltd for implementing a 600 Mw lignite-based power project at Mangrol near Surat on engineering, procurement construction (EPC) basis. The company has envisaged an investment of Rs 4200 crore for the project, informed senior company official.
GIPCL, which operates 500 Mw lignite-based power plant at Mangrol, looks to reach to total generation capacity of 1100 Mw by the third quarter of 2016-17.
“We have envisaged a total investment of Rs 4,200 crore for the expansion of our Surat Lignite Power Plant (SLPP) from the current 500 Mw to 1100 Mw. The company has appointed Lanco Infratech for the project,” said a senior company official.
“The source of finance is yet to be finalized at our board meeting scheduled to be meet soon,” said the official.
The project, which is an expansion of GIPCL’s existing lignite-based power project Surat Lignite Power Plant (SLPP), is expected to be commissioned by the third quarter of 2016-17.
“The company has issued letter of intent to Lanco Infratech Ltd on June 01, 2013, for implementing its 2 X 300 Mw lignite-based expansion power project near village Dungri, taluka Mangrol and district Surat, adjacent to its existing Surat Lignite Power Plant (SLPP) on EPC basis,” GIPCL informed in a filing to the stock exchanges on Wednesday. “The project of developing a 600-Mw lignite based thermal power plant based on CFBC technology was announced in 2012 by our chairman,” informed a company official.
The company has its own captive lignite mines at Vastan near Surat. The first lignite-based power plant was commissioned in November 1999, with generation capacity of 250 Mw, which was increased to 500 Mw under the phase-2 of expansions.
The company also has a 145 Mw gas-based combined cycle power plant at Vadodara. The company expanded its capacity and commissioned 165 Mw naphtha and gas-based combined cycle power plant at Vadodara. GIPCL sources natural gas from GAIL and R-LNG from GAIL and GSPC.
For the fiscal 2012-13, GIPCL’s standalone net profits jumped by 85 per cent to Rs 219 crore from Rs 118 crore in the fiscal 2011-12. Company’s standalone total income from operations stood at Rs 1416 crore, up by close to 9 per cent from Rs 1300 crore for the financial year 2011-12.
The company announced 25 per cent or Rs 2.50 per equity share of dividend for the financial year 2012-13. The Government of Gujarat, promoter of the company, holds 58.21 per cent through its various subsidiaries.
