By IANS,
Chennai : City-based Gemac Energy Ltd and Chinese power sector engineering, procurement and construction (EPC) player Sepco III Electric Power Construction Corporation have agreed to set up a 1,320 MW power plant in Tamil Nadu.
The two companies signed a memorandum of understanding (MOU) here Monday also to provide EPC services to other power project promoters in India.
“We will be setting up 2×660 MW coal based merchant power plant at an outlay of Rs.6,000 crore. We are discussing with Sepco III as to the amount it would invest in the project. There are other private investors who have shown interest in the project,” Gemac chief executive officer Kishore Arcot told reporters Monday.
He said the power plant will be of super critical technology and the project will have a debt-equity ratio of 75:25.
The power plant will have Chinese equipment including the super critical boiler and turbine generator.
Sepco III’s Executive President Zhang Hongsong categorically said the Chinese vendor of super critical technology boiler will not be violating the intellectual property rights (IPR) of another power sector equipment maker Alsthom.
According to Arcot, the land required for the project – around 800 acres – is already in the possession.
The Gemac group has acquired a total of 4,000 acres which may be off-loaded to promoters of power projects.