BLA Power to set up 140 Mw plant in MP

Mumbai-based BLA Power has planned to set up a thermal power plant in Madhya Pradesh's Narsinghpur district.

The plant will have four units of 35 Mw each. The company has signed a memorandum of understanding with the state energy department in a recently concluded industry meeting in Mumbai with Chief Minister Shivraj Singh Chouhan.

BLA Power is a subsidiary of BLA Industries.

"We are at an advance stage of completing the procedural matters of this merchant power plant, and we have signed an MoU with the state government," Anup Agrawalla, managing director of the company, told Business Standard on the phone from Mumbai.

A government spokesperson told Business Standard, "The company has signed an MoU with the energy department in Mumbai for a thermal power project and it would be extended all possible support."

The 140 Mw plant will be completed in a phases. The first phase will have 70 Mw and the first unit is likely to roar to life during early 2009. The company will make an investment of Rs 500 crore. "Our consultants are working with various banks and we expect to attain financial closure for the power plant soon," he further said.

The perennial river Narmada will feed the BLA power plant. The company has acquired land and is completing some environment related procedural necessities.

The BLA Power is reportedly in talks with various industries to work out tariff. Although Agrawalla did not disclose the expected tariff, he said, "The tariff will be competitive."

He also said, "From the power perspective we can supply power to the north and South regions."

The project is likely to create 40-50 direct and 200 indirect jobs.