Shriya set to power UP with 200 Mw plant

Shriya International Oil and Energy Ltd is setting up a 200 Mw gas-based thermal power plant at Rae Bareilly in Uttar Pradesh at a cost of around Rs 950 crore.

The scarcity of gas supply in the country was not a concern, thee company's director, projects, Saurabh Tewari said.

"The company has entered into fuel supply agreement with GAIL India for 47,597 million British thermal units (mmbtu) per day. Existing Hazira-Bijapur-Jagdishpur (HBJ) gas pipeline makes transmission of gas for northern part of the country easier," Tewari said.

The project will be part funded by equity of Rs 330 crore. The rest will be debt and internal accruals (Rs 100 crore). The company is negotiating a power purchase agreement with the PowerGrid Corporation. It hopes to enter the power distribution sector as well.

The company is in talks with the Power Finance Corporation and the International Finance Corporation for loans. It is expecting the gas supply to start by mid-2008 and the plant to start around the same time.

The plant will be a combined cycle unit plant of 200 Mw. "We have already tied up for plant machinery and turbines. At an efficiency of 53 per cent, the generation cost per unit will work out to be Rs 1.93," Tewari said.

Shriya International Oil and Energy Ltd had earlier helped set up power plants in Ukraine and posted a turnover of Rs 393 crore for 2004-05. The company expects a 10 per cent growth in the current fiscal and deals in oil, gas, and conventional and non-conventional energy.