October 16, 2008

Videocon to invest INR 25,000 crore in power business

It is reported that Indian consumer electronic goods maker Videocon Industries is planning to generate 5,000 MW power at an estimated cost of INR 25,000 crore and is scouting for land in Gujarat, West Bengal and Chhattisgarh for the purpose.

Videocon recently signed MoU with West Bengal and Chhattisgarh to set up power projects in the states. It is believed to be on a look out for a global partner for the power generation business.

Officials of Videocon said that "We are yet to start the land identification process. Once the land is identified, the company will prepare feasibility reports." They added that the projects would be financed in the debt equity ratio of 70:30.

Videocon officials said that "Videocon Industries through its SPV Pipavav Energy Pvt Limited has decided to set up 2x800 MW imported coal based super critical thermal power project near Pipavav port in Gujarat." They added that the cost of this project is expected to be around INR 8,000 crore depending on several factors such as availability of fuel.