RP-Sanjiv Goenka Group flagship CESC Ltd is awaiting coal linkage from the government to firm up plans for 1,320-MW (2 X 660 MW) thermal power project in Denkanal district of Orissa.
The company has started acquiring land for the proposed 660-MW pit head plant — expandable to 1,320 MW — near Dumka in Jharkhand.
“We have already acquired 772 acres at Denkanal. The project plan is finalised. All requisite clearances, including environmental clearance, have been obtained. Sources of funds have been identified. We will achieve financial closure within weeks of obtaining the coal-linkage,” the group chairman, Mr Sanjiv Goenka, told newspersons at a press conference here on Friday.
Referring to the coal linkage issue, he said: “Our proposal (for Denkanal) is on top of the list for consideration by the standing linkage committee. However, unfortunately the committee has not held a single meeting (to grant coal linkages) in the last one year.”
On the proposed project at Dumka, Mr Goenka said that the company had initiated the land acquisition process.
Initially, CESC will require 350 acres for setting up a 660-MW unit near the coal mine.
The construction of the 600-MW ( 2 X 300 MW ) coal-fired power project at Haldia in coastal West Bengal will begin in September. It is scheduled to be completed in three years. The company has obtained the requisite 448 acres for the estimated Rs 3,100-crore project.
Commissioning of the 660-MW plant in Maharashtra is progressing as scheduled.
Reiterating the group's focus in creating alternate energy portfolio, Mr Goenka said that the first solar project of 9 MW will be on-stream in January or February 2012. The project is estimated to cost Rs 120 crore.
Two more solar projects of 25 MW are in the pipeline. They will be developed in Rajasthan at an estimated cost of Rs 500 crore.
The company is also in advanced stages of finalising the detailed project plan for the proposed 90-MW hydro-electric unit in Arunachal Pradesh.
Results
The company's net profit remained almost stagnant at Rs 111 crore during the first quarter of this fiscal as against Rs 110 crore in the corresponding period of the previous year.
Mr Goenka said profit was impacted due to rise in fuel cost. The company has already filed a petition before the tariff regulator for an increase of 34 paise a unit for recovery of cost push.
CESC's shares gained 1.95 per cent to close at Rs 337.65 on the BSE on Friday.