Monnet Ispat & Energy has changed
the scope of its Orissa power project first announced in October 2005. The
company will now pursue a 600 MW coal-based plant (2x300 MW) instead of 300 MW
proposed earlier.
The project cost, estimated at
Rs.2,400 crore, will be financed through a debt-equity ratio of 70:30. The
company has already acquired 350 acres of land for the project and is scouting
for additional 100 acres. The plant will obtain coal from the Utkal B2 captive
coal block in the Talcher coalfields that was recently awarded to the company.
Work on the project is expected to
commence by July 2006. Phase I of 300 MW is scheduled for completion by 2008
with an investment of Rs.1,200 crore.
After completion of Phase I, the
company plans to raise Rs.360 crore as equity for Phase II through a proposed
public offering.
Also See:
Monnet
Ispat plans sponge iron unit (03-Jan-06)
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