Vedanta revives 10k cr power project in Punjab
Global metal and mining major Vedanta Resources has decided to revive its about Rs 10,000-crore independent power project in Punjab, which it had put on hold last year.business Updated: Nov 01, 2009 12:06 IST
Global metal and mining major Vedanta Resources has decided to revive its about Rs 10,000-crore independent power project in Punjab, which it had put on hold last year.
"We have taken a decision to revive the 1980 MW Talwandi Sabu project in Punjab. We will soon take a call on reviving 1980 MW power project planned in Orissa," Vedanta Resources Vice Chairman Naveen Agarwal said during an analyst call conference last week.
NRI billionaire Anil Agarwal led company put the Punjab power project on hold after global metal prices crashed by over 50 per cent, which pushed the company to reduce the capex for next four years by about USD 5 billion.
The metal and mining major is undertaking its commercial and captive power projects in India under the aegis of Sterlite Energy, which last week filed a draft prospectus with SEBI for an initial public offer to raise up to Rs 5,100 crore from the capital market.
The subsidiary of Vedanta's flagship firm Sterlite Industries intends to use the net proceeds to partially finance the construction and development of the Talwandi project. The proceeds will also be used to partly fund the 2,400 MW upcoming power plant in Orissa.
Sterlite Energy plans to set up power projects with total capacity of 11,000 MW in the next few years.
In July this year Sterlite Industries had raised over Rs 7,000 crore from the American market as equity to part finance its power projects.
Vedanta Resources plans to commission power plants with a combined capacity of about 4,500 MW by middle of 2010, taking its total power generation capacity to more than 6,500 MW.
The upcoming power projects include 3,150 MW unit in Orissa at Jharsuguda and Lanjigarh, 160 MW at Rajpura Dariba in Rajasthan, 1,200 MW at in Korba in Chattisgarh.
Besides, the company already has captive power plants at its sister companies such as Malco, Hindustan Zinc and Balco, which will take the power production to 6,500 MW.
The government has set an ambitious target to add approximately 78,000 MW of installed generation capacity by 2012, Sterlite Industries spokesperson said, adding that the company was working to contribute its bit to achieve the goal.