| The company intends to double capacity at Surat Lignite Power Plant (SLPP) to 500 MW at an estimated cost of Rs 997.24 crore. The company will also invest Rs 150 crore to develop newly acquired mines at Valia and Mangrol. |
| The upcoming lignite-based project is likely to be financed with a 70:30 debt: equity ratio. Approximately Rs 800 crore of debt and 220 crore of equity will be mobilised from the market. About Rs 125 crore will be contributed by the promoters and from internal accruals in the form of equity. |
| "Our performance in the last couple of years will help us raise the money from the equity market. The company has witnessed a remarkable turnaround in last two years. GIPCL posted a net profit of Rs 34.43 crore in the first quarter of the current fiscal year," said L Chuaungo, managing director, GIPCL. |
| The company will propose raising equity at a premium, keeping in mind its recent performance, added Chuaungo. |
| GIPCL has already appointed four merchant bankers to work on the upcoming offer. |
| The mines at Valia and Manrol are estimated to have lignite deposits necessary to generate 1000 MW for about 30 years. |
| "The power plant may be expanded again as we have promising sources of lignite now. The Gujarat Electricity Board and Power Trading Corporation have shown interests to buy power generated from the new facility," said Chuaungo. |
| GIPCL intends to commission the power plant by March 2007. |
| Meanwhile, GIPCL has expressed interest to take up GEB's power transmission project for Vadodara city. GIPCL has a total capacity of 555 MW, consisting of a 145 MW gas-based power station and a 160 MW dual fuels fired power station at Vadodara, apart from the 250 MW Surat plant. |
| The power from the gas based power station is supplied to the promoters Gujarat Sate Fertilisers and Chemicals Limits, Gujarat Alkalies and Chemicals and Petrofills Co-operatives and rest of it to GEB. |
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