Lanco Infratech today said it will invest over Rs 13,000 crore in setting up a 2,000-MW power plant and developing a coal block, which it has won through bidding from Maha Tamil Collieries, at Raigarh in Chhattishgarh.
"We have emerged as successful bidder and are selected as the Mine Developer and Operator (MDO) of Gare Pelma II coal block of Maha Tamil Collieries. We will set up a 2,000 power project using coal from the mine," Lanco Chief Executive Officer (Business Development) Nagaprasad Kandimalla said.
"We will invest Rs 12,000 crore in the power project and over Rs 1,000 crore in development of the mine. It might take four years for the projects to go on stream," he said.
Eight major companies, including GMR, GVK, Jindal Power, L&T, Reliance Coal and Sterlite, have participated in the bidding called by MTCL in July 2010.
"With this win and together with our existing coal assets of Griffin in Australia and Rampia block in India, Lanco group’s presence in resource sector has increased substantially to over 2 billion tonne," Lanco Executive Chairman L Madhusudan Rao said.
Kandimalla said that as per the agreement, Chhattishgarh, being the base state for the project would have the right to offtake 30% of the power generated from the project.
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"The remaining half would be connected to the Tamil Nadu grid and the rest, we will sell on commercial basis," he said.
Maha Tamil Collieries is a joint venture between Tamil Nadu Electricity Board and MSMC, a government of Maharashtra enterprise.
Maharashtra may not get any power from the project. In stead, it has sought 23% coal produced from the mine, which has an 768 million tonne reserve of the fossil fuel.
The Coal Ministry allocated Gare Pelma Sector II Coal Block to Maha Tamil Collieries, which had in July last year invited expression of ingterest from interested parties to expedite the development of the mine.