Don’t miss the latest developments in business and finance.

Lanco group may set up power plant in MP

Image
Shashikant Trivedi New Delhi/ Bhopal
Last Updated : Feb 06 2013 | 5:34 AM IST
Hyderabad-based Lanco group firm Lanco Amarkantak Power Pvt Ltd has proposed to set up a 1,200 Mw thermal power project in Madhya Pradesh.
 
The company, which has a presence in Chhattisgarh, will be able to set up "the Rs 4,000 crore" plant once coal linkage is available to the firm.
 
A company source said, "We applied for coal in two blocks of Chhindwara, of Coal India Ltd, last year. We are waiting for the clearance for our 1,200 Mw power project."
 
The company has applied for coal through a competitive bidding process in Madhya Pradesh. The company will require 4.5 million tonnes of coal per annum. However, it has not received any clearance from Coal India or its subsidiary Western Coalfields Ltd.
 
Lanco Amarkantak is already constructing a 3X400 Mw power project in the Korba district of Chhattisgarh. "We will offer power at much cheaper rates if necessary, and material and infrastructure are available to us. The Madhya Pradesh government has been very cooperative in offering land area and water supply etc. We have been assured by the state government that land will be allocated to us and water supply will also be ensured," said the source.
 
Lanco has asked for 1,000 hectares of land and 50 million cubic metres of water. The water will be available through the Pench River. "We will also opt for ground water," the source added.
 
Lanco, along with its foreign partners, has been pre-qualified to submit request for proposal (RFP) for ultra mega power Projects of 4,000 MW namely Sasan Ultra Mega Power Project, a pithead power project located at Sasan in Madhya Pradesh. A number of power generating companies have applied for coalmines in Chhindwara districts but coal allocations is awaited.
 
The power starved Madhya Pradesh has yet to make efforts to see private power projects taking shape in the state.
 
The only private power project Shree Maheshwar Hydel Power Corporation of 400 MW has been facing controversies since beginning, however work on the project has been resumed on 14 June. The Power Finance Corporation is reportedly executing the project.

 
 

Also Read

First Published: Jul 13 2006 | 12:00 AM IST

Next Story