Power companies to invest Rs.298 billion in Chhattisgarh


Raipur : Six private power firms have signed separate deals with the Chhattisgarh government to invest Rs.298 billion ($7.6 billion) for installing coal-fired power plants with a total capacity of 6,500 MW in the state’s northern region, a top official said Tuesday.

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Sarda Energy and Minerals Ltd, DB Power Ltd, SKS Ispat and Power Ltd, and Athena Chhattisgarh Power Pvt Ltd will each invest Rs.52 billion to set up separate 1,100 MW thermal plants.

Visa Power Ltd of Kolkata will invest Rs.50 billion for a 1,100 MW plant while Dheeru Powergen Pvt Ltd of Hyderabad would pour in Rs.40 billion for a 1,000 MW plant.

The deals were signed in the presence of Chief Minister Raman Singh late Monday. The power plants will come up in state’s northern areas, mostly in Korba and Raigarh districts that have about 18 percent of the country’s coal reserves.

Vivek Dhand, principal secretary, energy, signed the deals on behalf of the state government while V.K. Srivastava, secretary of the Chhattisgarh State Electricity Board (CSEB) represented the board. Top officials of the six private companies also signed the separate memorandums of understanding.

The state government has assured the investors of land, water and coal.

Currently Chhattisgarh has a production capacity of 1,410 MW.

Officials say the state will emerge as India’s power hub by 2011 as 34 private firms have signed deals for setting up thermal plants totalling 30,000 MW with an investment worth Rs.1.35 trillion ($34 billion).