Malanpur misses deadline

Malanpur Captive Power Private Ltd (MCCPL), earlier a joint venture between Wartsila India Ltd and local industrialists, will take another year to set up a Rs 105 crore power plant.

The company has plans to develop, finance, construct and operate a 25.5 Mw gas-based captive power plant in Malanpur, near Gwalior.

Of the total project of Rs 105 crore, Crompton Greaves has bought a 59 per cent stake in the company while Wartsila and SRF Ltd have 10 per cent and 30 per cent, respectively.

"Construction on certain sections of the project has started, while some clearances are still pending. The project will be completed within a year," KK Tiwari, managing director, Audyogik Kendra Vikas

Nigam, Gwalior, told Business Standard on the phone. Company officials could not be contacted.

Crompton Greaves has plans to invest Rs 16.03 crore in the share capital of Malanpur Captive Power Private Ltd (MCPPL). MCPPL has now become a subsidiary of the company.

Gail Ltd is providing gas through the Kailaras-Malanpur pipeline to a captive power plant in Malanpur. The state government has reportedly allowed entry tax exemptions to the company for a period of five years instead of 15 years, as demanded on the purchase of liquefied natural gas.

The company's proposals have been considered under the "thrust sector", in accordance with the Industry Policy, since it is a Rs 100 crore plus project. But the company's demand for exemptions from electricity duty for 10 years had been ignored by the MP finance department since it (the department) had not considered it a captive power unit, said a government source.

A government source said 8 acres will be allotted to the company in the Malanpur Industrial Area (in Bhind district) at concessionary rates. MCPPL will also feed companies like Cadbury India, Hotline and Surya Roshni later.

The transformer division of Crompton Greaves will invest Rs 32 crore in its existing Mandideep (near Bhopal) plant.