Suryachakra Power to tie up with the Orissa government for it's proposed 1200 MW Thermal power project

Suryachakra Power Corporation Ltd has announced that the Company is holding talks with the government of Orissa for setting up its proposed 1200MW Thermal Power Project and for getting various approvals for land allotment, water and all permissions excluding coal linkage or supply.

The Company will create a 1200 MW [4x300 MW] Thermal power project in Orissa. In the first phase the Company will install 300 MW. The set up cost for the first phase is estimated at about 300 million dollars.

The Company has entered into an MOU with M/s. Desein Pvt Ltd, New Delhi, M/s. Desein Pvt Ltd has wide experience and provides technical consultancy, supervision and execution of power projects.

It has also tied up with M/s. Indure Pvt Ltd, New Delhi, for developing a thermal mega power project of 1000/1200 MW capacity in Orissa. M/s. Indure Pvt Ltd is well versed with manufacture of equipment and EPC contracts. They are pioneers in developing power project to various Electricity Boards for the last 40 years.

The critical component for the plant is the assured supply of coal. The Company has signed an Expression of Interest [EOI] with Tata Power Trading Company Ltd [TPTCL]. As per the EOI; TPTCL will supply coal to the project on a long term basis for 10 years. Tata Power Trading has expressed interest in buying the power generated under a separate PPA. This EOI has also been signed.

Additionally the Company has IL & FS Infrastructure Development Corporation Ltd as a Project Development Agency for Advisory Services for setting up of the project. IL & FS Infrastructure Development Corporation would offer various services like Pre-feasibility Activities, Project Structuring and Project Documentation. Engineering & procurement and the Financial Closure for the project.

About the Company: The Company has set up a 20 MW power plant in Andaman and Nicobar in 2003 under a PPA valid for 15 years. This can be extended for a further period of 15 years. Two wholly owned subsidiaries, Lahari Power and South Asia Agro are setting up renewable energy based plants of 9.8 MW each at Chattisgarh. These subsidiaries have signed MOU's with Tata Power Trading Company Ltd for supplying the power generated for 5 years starting from Oct 07 subject to the approval of Chattisgarh State Electricity Board.

The third subsidiary MSM Energy Ltd is setting up two renewable energy based plants with capacity of 10 MW each at Maharashtra.

Source : Equity Bulls

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