Zee Group enters energy sector

Company plans Rs 3,500 power plant in Haryana, CNG outlets

Media giant Zee Group today announced diversifying into the energy sector, beginning with a Rs 3,500 crore gas-based power plant in Haryana.

"We have identified a location near Sonepat in Haryana. We are in talks with some companies including Reliance Industries, Shell and Gail India for gas supply," Siti Energy CEO AK Gupta said about the 1,063 Mw power plant.

He said the power plant would require five mmscmd of gas and they were looking at a price of $5.6 per mbtu for a period of 25 years. The company will also look for a foreign partner once it ties-up gas supply.

The project would be funded in a debt-equity ratio of 70:30, Gupta said, adding that it would start generation in about three years.

Siti Energy has also been granted licence by the Uttar Pradesh government for setting up CNG retailing stations in Moradabad, the company CEO said and added it had tied up with Gail India Ltd for CNG supply.

Initially, the venture would cost Rs 70 crore and the company hopes to benefit from the state government's decision to make public transport vehicles to run on CNG.

Siti Energy also proposes to foray into supplying LPG (cooking gas) to households through a pipeline in Moradabad, a company executive said.