Power-point: Essar homes in on Bengal
The Essar Group has submitted a proposal before the West Bengal government to set up a 500-MW thermal power plant in the state, for which it has set aside a total capital outlay of Rs 2,000 crore.
By Sutanuka Ghosal, TNN |
KOLKATA: The Essar Group has submitted a proposal before the West Bengal government to set up a 500-MW thermal power plant in the state, for which it has set aside a total capital outlay of Rs 2,000 crore. The group has identified Murshidabad district as the proposed site for the project.
Confirming the development, Sunil Mitra, principal secretary, state power department, told ET: “The Essar group has plans to increase its power-generating capacity. The group is keen to invest in the state as the demand for power is increasing here in an exponential manner.”
The confirmation came from Essar officials, too. An official spokesperson of the Essar Group said: “We have expressed interest to set up a power plant in the state subject to coal linkages. The investment will be routed through Essar Power.”
Mr Mitra added: “The Essar officials have informed the state government that Essar Infrastructure has applied to the coal ministry for captive coal blocks to ensure coal linkages for the proposed power plant.”
Incidentally, Essar Power has recently formed a 50:50 joint venture with Hindalco Industries called Mahan Coal Company for coal mine development at Mahan block of Siddhi-Singrauli fields in Madhya Pradesh following the allotment of mine by the Union coal ministry. Nearly 60% of the coal will be used for Essar’s 1,000-MW plant in Madhya Pradesh and the rest 40% will be taken up by Hindalco for a 750-MW captive power plant.
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The Shashi Ruia-controlled group’s sudden interest in the state can be gauged from the fact that it has already teamed up with the Konkan Railways to participate in the proposed light rail transit (LRT) system that will ease the traffic movement in Kolkata. According to the proposal, the Essar group will arrange necessary funds for the project and the Konkan Railways will provide the technology base to the BOT (build-operate-transfer) operator.
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