Emco plans hybrid model for selling power

Budget 2008, Chidambaram

Mumbai: Emco Ltd’s upcoming 540 MW merchant power plant in Maharashtra plans to implement a hybrid model for selling power.

Of the total power produced, 50 per cent would be sold on a short-term basis to big industrial consumers and the rest to State electricity utilities on long-term basis.

Financial closure for the first phase of 270 MW of the project has already been achieved. A consortium led by Axis Bank is funding Rs 1,000 crore and the company from its internal accruals is investing Rs 240 crore, said Rajesh Jain, Chairman and Managing Director.

He said that the company could get an average price of Rs 4 per unit from electricity sale. From long-term agreement of 25 years, Emco could get a price of Rs 2.60-2.80 per unit and up to Rs 4 for short-term arrangement of five years, Jain said.

Warora plant

The plant will come up at Warora in Chandrapur district. Land acquisition, environmental clearances and fuel supply agreement is already in place.

The coal would be sourced from coal mines in Chhattisgarh and water from the Warora river.

Jain said that unlike the conventional thermal plant, the Warora plant would not have a pond to hold fly ash.

It would be directly supplied to a number of cement plants, which are located in the area, he said.

The plant would be operational from 2010 and critical equipment such as boilers, turbines and generators are being sourced from Chinese manufacturers.

The balance of plant engineering is being handled in-house.

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