Thursday, December 27, 2007

Videocon plans to generate 5,000 MW power

New Delhi (PTI): Consumer electronic goods maker Videocon Industries on Wednesday said it plans to generate 5,000 MW power at an estimated cost of Rs 25,000 crores and is scouting for land in Gujarat, West Bengal and Chhattisgarh.

The company recently signed memoranda of understanding with West Bengal and Chhattisgarh to set up power projects in the states, sources said.

It is believed to be on a look out for a global partner for the power generation business.
"We are yet to start the land identification process. Once the land is identified, the company will prepare feasibility reports," company sources said.


The projects would be financed in the debt-equity ratio of 70:30, they said.
The company in an advertisement issued on Wednesday said it has an objective of producing 5,000 MW electricity in West Bengal, Gujarat and Chhattisgarh along with a major global player.
However, when contacted Videocon Industries Chairman Venugopal Dhoot refused to give further details. "We do not want to comment on this. No further details can be provided," he said.


The company invited bids from global EPC contractors for setting up a 1,600-MW imported coal-based power plant in Gujarat.

"Videocon Industries through its SPV, Pipavava Energy Pvt Ltd has decided to set up 2x800 MW imported coal-based super critical thermal power project near Pipavav port in Gujarat," the company said in the advertisement.

The sources said that the cost of this project is expected to be around Rs 8,000 crore depending on several factors such as availability of fuel.

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