Tata Electric Companies (TEC) has acquired a captive power plant from ACC for Rs 90 crore. The plant is situated in Wadi in north Karnataka.
This will be the second plant owned by TEC in Karnataka. The comp-any already owns a 76.8 mw naphtha-based power project in Belgaum.
A Tata spokesperson, who confirmed the deal with ACC, told Business Standard that if required, the capacity of the plant could be expanded from 37.5 mw to 50 mw.
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TEC comprises Tata Power Company Ltd, Andhra Valley Power Supply Company Ltd and Tata Hydro-Electric Power Supply Company Ltd. The three operate together as a bulk power supply licensee in Mumbai and share income and expenses in a 5:3:2 ratio.
TEC has targeted investments in projects amounting to Rs 4,800 crore over the next three years. Projects valued at Rs 2,600 crore have already commenced. These projects are expected to lead to expansions in Bihar, Karnataka, Madhya Pradesh and Orissa.
TEC's new projects are expected to generate 600 mw of power. The company is also discussing the structure for a proposed joint venture with Total of France for storage and distribution of liquefied natural gas (LNG) in Maharashtra. The initial capacity of the LNG terminal is expected to be around 3 million tonnes per annum.
During 1998-99, TEC issued debentures aggregating to Rs 150 crore on private placement basis. It also undertook renovation o