Jaypee plans Rs 4,000 cr power unit in Indore

Cement and energy giant Jaypee Group is setting up a thermal power plant in the coal-rich, predominantly tribal district of Sidhi, some 500 km from Indore.

The proposed 1000 mw thermal power plant, with an investment of about Rs 4000 crore, is coming up on the Amelia North Coal Block (ANCB) of Sidhi.

Coming close on the heels of Reliance Energy's bid for a coal bed methane- based power plant in Shahdol and the recent MoU signed by the Essar Group for setting up a 1000 mw power plant in the same district, Jaypee's foray indicates a renewed interest of private players in setting up power plants in Madhya Pradesh.

The Babulal Gaur government had decided to give the block to Jaypee Associated Limited (JAL), after scrutiny of bids against tender for the thermal plant. The letter of intent has already been issued to JAL and the state government has also received a formal proposal from the company.

A joint venture would be signed soon between the Madhya Pradesh State Mining Development Corporation (MPSMDC) and JAL. The proposed joint venture will have a debt-equity ratio of 70: 30.

At present, the Maheshwar Power Project (150 kilometers from Indore) and the Essar group are among the few private players left in the fray in the power sector in MP.

Most of the ongoing projects in the thermal power sector such as Birsinghpur and Amarkantak expansion and the proposed 1000-mw plant in Khandwa are being set up by the public sector. Even hydel power projects such as the Sardar Sarovar and the Omkareshwar Project are being set up by public sector companies.

The state government is also going ahead with other power project plans. Sizeable allocations for the expansion of Birsinghpur and Amarkantak plants of the Madhya Pradesh State Electricity Board have been made in this year's annual budget.

On the other hand, in the more reliable thermal power sector, the state Cabinet recently decided to set up a 1000 mw coal-based plant in Khandwa. Tenders have been floated already for appointing consultants for the ambitious project of the state government.

LIGHTS ON

The proposed 1000 mw thermal power plant is coming up on the Amelia North Coal Block of Sidhi.

A joint venture would be signed soon between the Madhya Pradesh State Mining Development Corporation and JAL

The proposed joint venture will have a debt-equity ratio of 70: 30.