By IANS,
Kolkata : S.K. Bangur Group company Jayshree Chemicals Limited is planning to set up three hydro power projects for Rs.220 crore in Gajapati district of Orissa, a top company official said here Monday.
“We are planning to do three power projects — two of six megawatts each and one of 20 megawatts — for an investment of around Rs.220 crore. This project will be executed by one of the subsidiaries of Jayshree Chemicals,” D.K. Maheshwari, executive director of the company, told reporters at a press meet.
The power projects will be executed by East Coast Power Limited. Jayshree Chemicals has 92 percent stake in that company.
He said the project units would be set up three years from the time of starting its work. “We plan to start the work for the power plants one year from commissioning of our existing project,” Maheshwari said.
Asked how the company plans to finance the hydro power project, he said the company may go to markets to raise money but it has not finalised any route yet.
The company, at present, is making a rights issue of 2,39,94,374 equity shares of Rs.10 each for cash at a premium of Rs.5 per equity share aggregating to Rs.3599.16 lakh. The rights issue opened Feb 26 and will close March 18.
“The issue is being made to part finance the company’s modernisation-cum-expansion plan located at Jayshree in Ganjam district of Orissa at a capital outlay of Rs.150 crore,” he said.
The company is engaged in manufacturing caustic soda, liquid chlorine and hydrochloric acid (HCl). It has an installed capacity of 22,500 million tonne per annum (MTPA), 15,500 MTPA and 20,000 MTPA caustic soda, liquid chlorine and HCl respectively.
The Rs.150 crore capital investments would introduce state-of-the-art membrane cell technology by replacing the existing mercury cell technology and raise production capacity of caustic soda from 65 tonnes per day to 152 tonnes per day in the Ganjam plant.
Of the total Rs.150 crore, Rs.90 crore would be debt component and balance would be internal accruals and excise credit available to the company.
“Commissioning of the Ganjam project is scheduled to be in October this year,” he said.
The company is eyeing to clock a turnover of Rs.100-110 crore in 2010-11 and is expecting to post Rs.55 crore in the current fiscal (2009-10), he said.