EPGL to buy coal worth Rs 3,000 crore for Salaya plant in Gujarat

It expects sea water intake system and coal conveyor corridor to further enhance margins after commissioning

Essar Power Gujarat Limited will invest about Rs 3,000 crore in next one year for buying coal from various international destinations for its power plant located at Salaya in Dev Bhumi Dwarka district of Gujarat.

The company expects the sea water intake system and coal conveyor corridor to further enhance margins after commissioning.

"We have already sourced Rs 1,500 crore worth of coal using the platform and will invest another Rs 3,000 crore in buying coal the next year," Ramesh Kumar, managing director, EPGL, said.

The company has started an e-auction platform five months back and has 30 registered miners and traders participating from Indonesia, Australia, South Africa and Colombia.

 

"Operation of a sea water intake system and a coal conveyor will start soon and will help us become even more efficient. Once they are up and running, these units will help add at least Rs 150 crore to our margins," Ramesh Kumar said.

The company's revenue has grown by 12 per cent to Rs 951 crore in first half of financial year 2016-17 as against Rs 851 crore in corresponding period last year. EPGL is also focusing on to further bring down operation and maintenance costs, which have been consistently below CERC norms.

KVB Reddy, chief executive officer, Essar Power said: "We have done a lot to make all our units efficient and profitable. The fact that its half-yearly EBITDA growth is almost three times the revenue growth shows the significant cost and operational efficiencies that EPGL has been able to harness."

The company has recorded a 33 per cent growth in EBITDA in the half year ending 30 September 2016 over the previous fiscal. The EBIDTA for the first of the current financial year stood at Rs. 300 crore compared with Rs. 226 crore in the same period last year.