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A consortium led by Madhucon Projects Ltd has received a letter of intent to set up a 300 MW (2x150 MW ) mine mouth coal fired power plant at south Sumatra in Indonesia.
The power plant will come up close to Dawas, the existing coal mine owned by PT Madhucon Indonesia, a company of the Hyderabad-based, Madhucon Projects. With assured coal, the power plant is expected to get all clearances automatically, an official of the company told Business Line here.
Madhucon and Group companies will own 95 per cent stake in the special purpose vehicle to be formed to implement the project. The balance would be by the local consortia partner. A power purchase agreement for 25 years will be signed with PLN Energy, an Indonesian Government company.
Madhucon Projects owns the Dawas site, which has reserves of 900 million tonnes over an extent of 8,600 acres. The company has licence to mine it. “We expect to start production from February 2012. Plans are to export to India as well,” the official said.
The company has also got in-principle clearance for the construction of a jetty.
In the present power project, the Indonesian Government had called for bids and Madhucon emerged the lowest. It will be the first power venture for the company. It will be a BOT (Build, Operate, Transfer) project for 25 years.
Madhucon Projects is a diversified infra company with interests in highway roads, power, coal, railways, dams, bridges etc. It has an order book of around Rs 6,500 crore, a release from the company added.
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