Tata Power signs pact for captive project in Saudi

Tata Power Company Ltd (TPC) yesterday announced the signing of a pact with the National Power Company of Saudi Arabia to jointly set up a captive co-generation project.

The project is being set up in Jubail - the industrial city of Saudi Arabia - to meet the power (100 mw) and steam requirements of Sahara Petrochemical Company.

Sahara is setting up a propane dehydrogenation and polypropylene (PDH/ PP) project in the Gulf kingdom.

This is the first time that the company is planning to set up a generating station abroad on an ownership basis.

"The idea behind the overseas push is to have a diversified portfolio. We are working out the equity structure," Mohan Gurunath, vice-president of Tata Power Company, said.

Earlier, Tata Power has carried out several overseas projects and successfully completed erection, testing and commissioning of major power projects in Saudi Arabia, Bangladesh, Kuwait, Algeria, Myanmar and Thailand.

The company has also undertaken projects pertaining to power plant/operations management and plant operations training. The National Power Company is a subsidiary of the diversified Al Zamil group, a leading conglomerate in the Kingdom of Saudi Arabia and the Gulf states.

Tata Power is India's largest private sector power company in terms of owning generation capacity. The company has about 2,300 mw of generation capacity and a major power distribution position in Mumbai and Delhi.