Adhunik Group of Industries is planning to build power plants with total capacity of 3,480 MW and is scouting for coal and iron ore mines to shore up its business.

Mr Arun Kedia group chief financial officer told Reuters that "The future growth of this group will come from mining and power business.”

He added that "Steel is the business with which we started this group but now steel is getting marginalized in our long term growth plans."

Mr Kedia said that "We don't need to buy projects, in fact we are creating a pipeline of such development opportunities. We can be in a situation to sell these projects in the future if somebody needs.”

He further added that the group is negotiating with three firms to sell about 200 MW power in long term contracts from its under development 540 MW power project at Jamshedpur in Jharkhand.

Mr Kedia said that "JUSCO (Jamshedpur Utilities and Services Company), then DIAL (Delhi International Airport Ltd, a unit of GMR Infrastructure (GMRI.BO)) and CESC (CESC.BO) are the three companies with which we are actively negotiating."

Mr Kedia said that it aims to keep 200 MW of its 540 MW Jamshedpur project for short term trading adding he expects short term rates to remain in the range of INR 4 to INR 5 per unit for next five years.

Adhunik Power & Natural Resources a unit of the listed group firm Adhunik Metaliks is planning to set up two 1,200 MW projects, one each in Bihar and Chhattisgarh and to double the capacity of its 540 MW project at Jamshedpur.

(Sourced from Reuters)