KPCL, Emta Float JV To Fuel Bellary Power

Bangalore, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
A joint venture of Karnataka Power Corporation Limited (KPCL) and private sector company Emta, `Karnataka Emta Ltd' has been formed to supply coal for the state's 500 MW Bellary Thermal Power Station. The joint venture company, in which KPCL has 26 per cent stake, will excavate coal from the mines in the western coal pits near Nagpur.

Addressing media persons, KPCL chairman K Jothiramalingam said that the joint venture would fetch the company, coal at a price of Rs 1650 to Rs 1700 per tonne compared to Rs 2300 per tonne. This would save the company between 30 paise and 40 paise per unit on the power generation costs.

The coal mines, from where the joint venture company would supply 4,500 kilo calories coal, from six coal pits which has a reserve of 70 million tonnes of useable coal would be in the name of KPCL, he added.

According to Mr Jothiramalingam, five firms had been shortlisted for gas supply to the Rs 4100-crore Bidadi power plant. The plant, for which the expression of interest for gas supply to be issued during the week, was to be supplied 1.4 million tonnes of gas, he added. A tender for the project would be floated next month.

He said that the ministry of power was studying a proposal to consider 500 MW projects as mega projects. ``If this happens, we will get excise duty exemption, which is 16 per cent and about Rs 140 crore would be saved. The cost of the project can be brought down to less than Rs 2,000 crore,'' he added.

KPCL announced financial closure of its Rs 613-crore 210 MW Raichur Thermal Power Station expansion project involving a consortium of banks, led by Canara Bank and IDFC. The debt component for the project was 80 per cent at Rs 490 crore while the remaining 20 per cent was raised through KPCL's internal accruals.

Meanwhile, Bharat Heavy Electricals Limited has been awarded the Rs 2100-crore Bellary project to be completed in a period of 36 months starting December. The project was earlier projected at Rs 2,350 crore.

Addressing the function, Karnataka Chief Minister S M Krishna said that the state was looking at the completion of the ongoing 440 MW Raichur power thermal power station 7 and 8 units, 1400 MW gas-based plant at Bidadi as well as the 500 MW Bellary power project to meet the power requirements of the state. However, he added, ``these may not be sufficient to meet the power requirements of the state.''