IBEF: August 26, 2014
New Delhi: In order to raise the group’s capacity, billionaire Mr Gautam Adani has planned to invest US$ 2 billion to build a 2,500 megawatt (MW) power plant in Odisha. This plant will also boost electricity supply in the country and raise the capacity of the Adani Group by a quarter.
This move has been decided within two weeks after the company acquired Hyderabad based-Lanco Infratech’s Udupi powerplant for US$ 327 million.
The Adani Group expects to sign a pact with the Government of Odisha in next four months to set up the new plant, according to Mr Rajesh Jha, Chief Operating Officer (mining), Odisha, Adani Group.
“The conglomerate plans to generate 1,000 MW of electricity by 2017 in Odisha, ramping up to full capacity by 2019,” as stated by Mr Jha.
Mr Jha added that the company would need about 1,500 acres of land and is already exploring the possibilities of water and rail connectivity at the identified sites. He also said that the company has already identified a few sites in Angul and Dhenkanal districts of Odisha.
The plant will source coal from two blocks which are under development in Odisha with a total capacity of 70 million tonnes per year (MTPA).
“We expect to start coal mining in two years,” Mr Jha stated. He also added that the power plant would require 25 million tonnes (MT) of coal per year at full capacity along with the 100 MT of coal that it imports from Indonesia every year to feed the plants. He also speculated that this amount might double by 2020.
At its plants in Gujarat, Maharashtra and Rajasthan states, the group currently has 9,240 MW of power capacity.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.