December 03, 2008

KRIBHCO to set up INR 4,000 crore power project in Bihar

It is reported that Gujarat based fertilizer cooperative major Krishak Bharati Co operative is planning to set up a 1,000 MW 51:49 JV project in Bihar in association with the Bihar State Electricity Board at an investment of INR 4,000 crore.

Discussions held between KRIBHCO and Bihar government on March 17th 2008 in Patna were mostly focused on sourcing raw materials for the power project. The state government plans to use some of its coal mines, which are now within the jurisdiction of the Jharkhand government to source coal. While a part of the output would go to Bihar, to be wheeled out through grid to be sold to other states, as in the case of the Chhattisgarh project.

Mr Chanderpal Singh Yadav chairman of KRIBHCO said that "It all depends on how the Bihar government helps us in setting up the plant, now that we have decided to go in for a second power venture. The Bihar cabinet will decide on our proposal."

Mr BD Sinha MD of KRIBHCO said that "All that I can say is that we are making efforts to move into power trading as part of our diversification plans. While the Chhattisgarh plans are on track, the Bihar effort is still at a nebulous stage. We have shown interest and the Bihar government is ready to support us." He added that around 1,000 acres will be required for setting up the power plant.

KRIBHCO’s first power 51:49 JV, a 1,000 MW project in association with the Chhattisgarh State Electricity Board, is also on track.