CNBC TV18 reported that Singareni Collieries Company is planning to set up a 600 MW thermal power plant.

The report said that Singareni Colleries will invest nearly INR 3000 crore to set up a 600 MW coal based power plant in the Adilabad district of Andhra Pradesh.

The company has coal supply arrangements for the proposed power project. It is planning to raise 30% of the capital through internal accrual and remaining as debt from financial institutions.

Mr S Narsing Rao CMD of Singareni Colleries said that "We ourselves consume about 100 MW to 120 MW power which we buy from Northern Power Distribution Corporation at exorbitant prices, and also we have coal and locating power plant at the pithead offset the costs and makes the project financially viable."

Singareni is also planning to introduce longwall technology to boost production mechanization in four of its four under ground mines. This will require an investment of over INR 2000 crore. It has also invited expressions of interest from private parties for development of a mine.

Mr Narsing Rao further said that "We have some plans on pilot-basis to outsource, basically the risk is there to bring in investment, technology and produce. The revenue sharing will be on cost per-basis."

(Sourced from CNBC TV18)