Zee group today announced plans of diversifying into the energy sector, beginning with a Rs 3,500 crore gas-based power plant in Haryana."We have identified a location near Sonepat in Haryana for a 1,063 MW power plant. and are in talks with some companies including Reliance Industries, Shell and Gail for gas supply," A K Gupta, CEO of Siti Energy, said. The power plant would require 5 mmscmd of gas and a price of $5.6 per mbtu for a period of 25 years had been estimated. The company will also look for a foreign partner once it ties-up gas supply. The project would be funded in a debt-equity ratio of 70:30 and it would start generation in about three years, Gupta said. Siti Energy has also been granted a licence by the Uttar Pradesh government for setting up CNG retailing stations in Moradabad and had tied up with Gail for CNG supply. Initially, the venture would cost Rs 70 crore and the company hopes to benefit from the state government's decision to make public transport vehicles run on CNG, Gupta said. Siti Energy is also planning a foray into supplying LPG (cooking gas) to households through pipeline in Moradabad, a company executive said.
