DLF to set up power plant at Rs 400 cr

In the first instance of a real estate developer going in for a captive power generation facility for its township, DLF will set up a 100-mega watt (mw) plant in the country's BPO capital Gurgaon.

The gas-fired plant is expected to cost around Rs 400 crore and will generate power at around Rs 4 a unit.

The company is awaiting a licence to distribute power in the area. It has already applied to the Haryana Electricity Regulatory Commission for permission to distribute power to its commercial and residential users.

A pilot plant of 10 mw capacity is already operational and supplies electricity to DLF's Cyber City, a major commercial centre housing multinational corporations and leading business houses.

However, since it is located within the premises, it does not need a distribution licence for being a captive power plant.

K K Bhattacharya, executive director, DLF Estate Developers, said, "We are setting up the plant as Dakshin Haryana Bijli Vitran Nigam's service is dismal. We hope to get the distribution licence in the next three months."

The DLF power plant is likely to have four units to be run on gas supplied by the Gas Authority of India Ltd. The plant will require 40,000-50,000 cubic metres of gas a day.

It is planned to be completed within 10 months from the date of start of work. The company plans to import the power generation equipment from the US.

"By generating our own electricity we will provide more convenience to users. The cost per unit to users will be the same as anywhere in Haryana (at present Rs 4.30 a unit)," Bhattacharya said.