November 22, 2008

Emco to set up 600 MW thermal plant in Chhattisgarh

ET reported that Emco is planning to build a 600 MW coal fired power generating plant in Chhattisgarh as surging demand for electricity attracts large global funds and foreign power majors to India.

Mr Rajesh Jain chairman of Emco said that it has already signed an agreement with the Chhattisgarh government to build the INR 2,400 crore project through an equal JV with a Kolkata based steel trading firm. He added that "We are talking to the state government for fuel linkage and will then work out the structure of the JV."

Emco is already building a 270 MW, INR 1,240 crore power plant at Varora near Nagpur, for which the financial closure has been completed. Typically, financial closure of a power project is termed complete once lenders are convinced of the bank ability of the project; that includes vital clearances such as power purchase agreement, coal linkage agreement, water availability, land acquisition and equipment supplies. A contract with equipment suppliers is the last stage.

Emco’s wholly owned subsidiary Emco Energy builds the group’s power plants. While Emco Energy would build the Nagpur project, the promoters are yet to decide on which company would build the Chhattisgarh power plant and other future power projects.