Tata Steel forms JV for Orissa power project
Tata Steel is setting up a Rs 675-crore coal-fired power station in Orissa in alliance with Hyderabad-based Jasper Industries.
By ET Bureau |
KOLKATA: Tata Steel is setting up a Rs 675-crore coal-fired power station in Orissa in alliance with Hyderabad-based Jasper Industries. The pro-posed plant of 2 x 67.5 mw capacity will meet the steel major���s captive power requirement.
Alongwith its wholly-owned subsidiary Rawmet Ferrous Industries, Tata Steel has entered into a share subscription and shareholders' agreement with Jasper Industries for the venture, the steel major said in a filing to the Bombay Stock exchange (BSE) on Monday.
Following the shareholders��� agreement, Tata Steel and Rawmet would together pick up 26% in the new company, Bhubaneshwar Power and Jasper Industries will hold 74% stake of the equity in Bhubaneshwar Power, the steel major said.
Incidentally, Jasper Industries is a dealer of cars and commercial vehicles for Tata Motors. Based in Hyderabad, Jasper shares a long association with the Tata group auto company.
���For Jasper Industries, this is our first foray into the power sector. We share old ties with the Tata group. This venture will be helpful for both the partners,��� a Jasper Industries source said. ���Some 60% of the power generated will be used for Tata Steel���s captive ferro alloy units in Orissa.
The remaining 40% will be given to the state grid,��� the source added. Coal required for the project will be supplied by Mahanadi Coalfields (MCL) from Talcher. ���The power plant will need around one million tonne of coal per annum. We have already been provided linkages for coal supply,��� the source said.
The project is expected to achieve financial closure will the next cou-ple of months. The plant will come up at Anantpur village, some 20 km from Cuttack, Orissa. The shareholders��� agreement is subject to the fulfilment of certain conditions, Tata Steel said in the statement.
Alongwith its wholly-owned subsidiary Rawmet Ferrous Industries, Tata Steel has entered into a share subscription and shareholders' agreement with Jasper Industries for the venture, the steel major said in a filing to the Bombay Stock exchange (BSE) on Monday.
Following the shareholders��� agreement, Tata Steel and Rawmet would together pick up 26% in the new company, Bhubaneshwar Power and Jasper Industries will hold 74% stake of the equity in Bhubaneshwar Power, the steel major said.
Incidentally, Jasper Industries is a dealer of cars and commercial vehicles for Tata Motors. Based in Hyderabad, Jasper shares a long association with the Tata group auto company.
���For Jasper Industries, this is our first foray into the power sector. We share old ties with the Tata group. This venture will be helpful for both the partners,��� a Jasper Industries source said. ���Some 60% of the power generated will be used for Tata Steel���s captive ferro alloy units in Orissa.
The remaining 40% will be given to the state grid,��� the source added. Coal required for the project will be supplied by Mahanadi Coalfields (MCL) from Talcher. ���The power plant will need around one million tonne of coal per annum. We have already been provided linkages for coal supply,��� the source said.
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The project is expected to achieve financial closure will the next cou-ple of months. The plant will come up at Anantpur village, some 20 km from Cuttack, Orissa. The shareholders��� agreement is subject to the fulfilment of certain conditions, Tata Steel said in the statement.
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