LNJ Bhilwara keen on hydel projects in MP

Bhopal-based HEG Ltd, an LNJ Bhilwara group company, has shown interest in setting up hydel power projects at three sites identified by the Narmada Valley Development Authority (NVDA), in Madhya Pradesh.

The NVDA has identified sites for hydel power projects in Handia, Boras, and Hoshangabad to generate 160 MW. Two projects will be of 50 MW each, and the third project 60 MW.

The group is one of Asia's leading graphite electrode manufacturers and the largest exporter.

"Chief Minister Uma Bharti had talks with the company chief, Ravi Jhunjhunwala, recently. She assured him she would try to involve private parties in these projects," a company source told Business Standard.

However, official sources say the government has also asked the Narmada Hydroelectric Development Corporation (NHDC), a joint venture of the Madhya Pradesh government and the National Hydroelectric Power Corporation, to complete the pre-feasibility report (PFR) of the proposed projects.

"The NHDC has submitted the report, and the government will now ask the corporation to prepare a detailed project report, an official source said.

HEG has set up a captive power plant of 13 MW with an investment of Rs 68 crore at Tawa in Hoshangabad. If the company is asked to complete the project, power will be available at Rs 2.5 (approximately) per unit.

However, it is not clear whether the project will go to NHDC or HEG.

"HEG can complete the projects in three years. Each project will cost Rs 200 crore," said a company source, adding, "other competitors like JP Rewa will compete with HEG if the government invites bids."

HEG has proved its strength in the power sector by investing Rs 100 crore in setting up a 30-MW thermal power plant in Mandideep. It has completed a 100-MW project and a 200-MW one in Himachal Pradesh.

The company plans to make a fresh investment of Rs 500 crore in Madhya Pradesh by increasing its Mandideep plant capacity from 30,000 million tonnes to 60,000 million tonnes by setting up the new captive power plant.